Category management is a process that involves managing product categories as business units and customizing them on a store-by-store basis to satisfy customer needs. The document discusses the evolution of category management processes over time and introduces an acronym (CATEGORY) to help remember the 8 steps of category management and their intended applications. It also discusses how this acronym framework can be applied to talent transformation processes.
2. Category Management
Category Management is a process
that involves managing product
categories as business units and
customizing them (on a store by store
basis) to satisfy customer needs.
- Nielsen
- The Partnering Group
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3. CATEGORY MANAGEMENT
Retailers and manufacturers have refined the process of Category Management over the years
Some processes have five steps, some have six. In some, the sequence of the 8 steps have
been rearranged compared to the original
All of them begin with the traditional eight steps and then develop processes with fewer steps
while keeping to the objectives of the original version
Reason stated is that the resulting steps are shorter, tighter and easier to absorb and act on
Today, a whole suite of sophisticated tools and applications are available that category
managers can use and find the process friendly and easy to implement
The 8 step process has now become less of a standard and more of a starting point
Keeping all of the above in mind, a acronym has been created which helps us remember the
steps, the right sequence and intended applications of each stage
rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008
4. The CATEGORY Acronym
Based on the 8 step Category Management Model
In order to ensure that the 8 steps of the Category
Model were easy to recall and implement – an
acronym was successfully developed that
aligns each of the 8 steps with the word :
CATEGORY
rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008
5. The CATEGORY Acronym
Based on the 8 step Category Management Model
CONSTITUENT PRODUCTS (Category Definition)
ALIGNMENT WITH RETAILER (Category Role)
TRACK PERFORMANCE TO DATE (Cat Assessment)
EXPECTED TARGETS & OBJECTIVES (Cat Scorecard)
GO-TO-MARKET STRATEGIES (Category Strategies)
OPERATIONAL OPTIMISATION (Category Tactics)
RESPONSIBLE EXECUTION (Category Implementation)
YIELD REVIEW (Category Review)
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6. Common Threads between Category Mat & Talent Tran.
Space Allocation : Role Description
Plannogramming : Organogram
Inventory : Head count
Assortment : Team
Price : Cost To Company (CTC)
Shelf Edge Label : Designation
Material GRN (Goods Received Note) : On-boarding and Induction
Visual Merchandise / Display : Grooming and Uniforms
Revenue / GMROF : Pay-Slips / Productivity / Bottom-line
Product Promotions : Incentives / Rewards & Recognition
Product Life Cycle / Road Map : Career Path
Product Roll Overs : Succession Planning
Excess Stocks : Bench
End of Life : Pink Slip
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7. Talent Transformation
The social leadership of talent resources through
corporate & academic partnerships with an aim to
uplift economy and culture through satisfying
customer and individual experiences across all
touch-points.
R.V.Balasubramaniam Iyer
INDIA
rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008
8. The CATEGORY Acronym
FOR TALENT TRANSFORMATION
It is increasingly obvious for retail operations success
that Talent – sourcing, transformation and retention is
getting to be critical. Since the linkages are so common,
it was decided to retain the acronym :
CATEGORY
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9. CATEGORY – for Talent Transformation
COLLABORATION Mindset
ALIGNED with Company, Values & Colleagues
TRAINING for Role & Beyond
EXECUTION Efficiency
GUEST RELATIONS
OUTSTANDING Experience
RESPONSIBLE Work-Life-Environment Balance
YIELD MATRICES – Comprehension & Empowerment
rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008
10. Reliance Accelerated Collaboration Environment (RACE)
Work is Accelerated by speeding up decision making using a
proven process and methodology, getting months of work done in
two to three days. It is speed and quality at the same time.
RACE helps create effective Solutions by developing plans that
are fully bought into by all the stakeholders and can be immediately
mobilized coming out of an meeting / session.
RACE is not a typical work Environment but is a creative
workspace that is technology enabled knowledge rich, flexible, fun
and can be designed and reconfigured real-time to facilitate the
work and priority.
rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008
11. The C-D-I-T Model
CORPORATE LEADERSHIP
DEPARTMENT / CLUSTER
CONSULTATIVE SALES IN STORE ASSOCIATES
TRANSACTION Back office
DELIVERY / LOGISTICS
INSTALLATION / ResQ
CONSUMER ELECTRONICS
TRAINING / iPromise
DOMESTIC APPLIANCES
IT & PERIPHERALS
TELECOM
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12. COLLABORATION MINDSET
Everybody talks a good game about collaboration, buts its often just big talk
The other thing is that a lot of companies lack the systems to be able to collaborate
And they also lack the culture of collaboration.
- Dale Hagmeyer, Vice President,
Gartner
The launch of Reliance Retail and the Cap Gemini experience (ASE). The NavCenter /
Innovation Labs – concepts pioneered by Matt Taylor / Langdon Morris
Touch-points of Consumer Experience at CDIT@RDRL as a collaborative model of RR
rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008
14. The Lijjat Case Study (www.lijjat.com)
Shri Mahila Griha Udyog Lijjat Papad. India’s popular crispy bread. Consumed roasted or Fried.
Started with a modest loan of $2. The cooperative now has a annual sale that exceeds $ 1 billion
Completely run by women members as owners.(Ben). No male members – even on honorary basis
Kneading – Rolling – QC (consistency & good quality) – Packing – Supply to Distributor.
Accountants in each branch checks daily accounts. Single price across India.
Exports exceeding $ 0.25 billion! But no difference in quality of product for India versus Export.
Profits (and losses) are shared equally among all members irrespective of seniority, age or role
Overall committee of 21 members oversee the institution overall working No Power Center
Objective of committee to ensure self-dignity and respect of all members at workplace
Members from all communities, religion, language and demography..
DECENTRALISATION works !
Remuneration to all members is made in form of gold coins – 5 gm and 10 gm gold.
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15. TEAM WORK that was measured & rewarded
The Inter-Bottling
Units Incentive
Program.
The Sales Teams The Trade Partner
Incentive Programs. Incentive Programs.
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16. ALIGNED with Company, Values & Colleagues
NSO Training Model – to build a sense of pride and clarity of role for each associate
Availability – Integrity - Dependability (AID) model for gaining supervisor confidence
Transparency of company’s accountability among colleagues – Lijjat case study
TEAM work that is measured and rewarded – Coca-Cola India
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17. DIGITAL, SERVICE & DELIVER Models
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18. Training Consumers – iPromise
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19. TRAINING for Role and Beyond
Product, Process, People Skills through NSO / PSO , P1/P2/P3, SUSD, Tech Labs,
DIGITAL, SERVICE, DELIVER models – to serve formats and categories
The Learning model developed by Creative Channel Services (www.cyberscholar.com)
Certification models recognized by the Retail Industry : (Apple / Skillsmart/ Purple Passport)
Life long Learning assistance – The Manipal University Model of RDRL
Web 2.0 tools for collaborative learning – “Learning-Lounge” of Best Buy
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20. GROOMING & Code of Conduct - SELF
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21. DRESSING UP OUR STORES
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22. EXECUTION EFFICIENCY
The Operating Model – Plan/Buy/Move/Sell/Support – Efficiency across all elements
The Product Demo, Test Drive, Seminar and iPromise – by Apple Inc.
Grooming of Self & Store. Job Aids to support successful performance
Workplace ethics – Code of Conduct, Netiquettes and Global sensitivities
Nurturing EQ as Energy / Enthusiasm Quotient
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24. rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008
25. GUEST RELATIONS
STAR Profiler as benchmark from Singapore Airlines / SQC / Singapore Tourism
PRIDE : Privacy, Respect, Involvement, Dignity & Empathy from Disney Institute
Grahak Devo Bhava – the guest relationship model of RR, the postcard
When everyone matters and everyone knows he or she matters, employees are happy to come
to work and they’re eager to give you their energy, creativity and loyalty
- Lee Cockerel
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26. The Economics of Service
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27. Making Buying Technology a simple task
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28. OUTSTANDING EXPERIENCE
Making Buying a non threatening Experience
The Price of Premium Service – Coffee Example stated
Smile + Eye Contact + 3 feet diameter rules observed. Queue Busters.
Uniforms and Working Environment – to make associates most friendly
G.E.M.S. – “Go the Extra Mile” concept of Government of Singapore
Empowered to focus on experience rather than just the processes and systems.
Happy call by ResQ and lifelong service – 24*7. Story Telling / Customer Endorsements
Appealing to sight, sound, smell, touch, taste – wherever appropriate
rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008
29. The Akshayapatra Foundation www.akshayapatra.org
One in three of the world's malnourished children lives in India.
India has the second largest education system in the world with 108 million children attending primary school
Akshaya Patra means “inexhaustible container” (Sanskrit) , has its origins in India’s famous epic
Mahabharata
TAPF Vision reads “No child in India shall be deprived of education because of hunger”
“Research studies prove that mid-day meals is the most powerful incentive to attract children to schools”
Was set up in June 2000 in Bangalore, as a charitable Trust to offer nutritious food to deprived children in
government schools to feed 1500 children
Cost-effective program spends only $0.15 per wholesome meal / per child
Akshaya Patra is secular and child inclusive and is provided only in Government schools
Today – TAPF feeds a million children every day, the largest in the world !
rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008
30. RESPONSIBLE Work-Life-Environment Balance
World class facilities and global scale canvas of operations available for all
The greening of a desert - Jamnagar
Car pool / Office picnics and off sites / Family celebrations / Chairman’s Diwali bash
Telecom revolution in India that helped eradicate embarrassment associated with illiteracy
Organized Retail revolution that promises to minimize hunger and enhance consumption & Infrastructure
The three wise monkeys are a pictorial maxim. Together they embody the proverbial principle to quot;see no
evil, hear no evil, speak no evilquot;.
Infosys Foundation that helped create and sustain The Akshayapatra Foundation
rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008
31. YIELD Matrices – Comprehension & Empowerment
Ability to analyze footfalls and purchase patterns of consumers at store / locations
Attachment selling as a job-aid for salesman – by DM’s leading to a way of life
Shrinkage and other yield-reducing elements (EOL) - minimize
Tracking device at back office for score card – Individuals, Store and National (DSS)
Regional and Store level consumer training and promotions as CRM
Competence to read and comprehend revenue ratios such as :
Yield per sq ft and Yield per person
Revenue (Average Ticket Value * Footfalls * Conversion Ratio)
rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008
32. CATEGORY – for Talent Transformation
COLLABORATION Mindset
ALIGNED with Company, Values & Colleagues
TRAINING for Role & Beyond
EXECUTION Efficiency
GUEST RELATIONS
OUTSTANDING Experience
RESPONSIBLE Work-Life-Environment Balance
YIELD MATRICES – Comprehension & Empowerment
rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008
33. CONCLUSION
Category management to date across the world has been a function that has its roots in profitable
product management and the functions thereof
With the growing expectations of the Global Retail Village, it is time to push people management
the respect and position it deserves, as a line function
Left alone, Category Management can continue its popular path and retain status quo
But Talent Transformation needs to be integrated for the future of retail and the people who
choose to make a career in this industry
If we have a unified approach – that marries Category and Talent together at the store level, the
effect we would experience would be outstanding – like a bow tie
rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008
34. The Category Bow-Tie !
COLLABORATION Mindset
CONSTITUENT PRODUCTS (Category Definition)
ALIGNED with Company, Values & Colleagues ALIGNMENT WITH RETAILER (Category Role)
TRACK PERFORMANCE TO DATE (Cat Assessment)
TRAINING for Role & Beyond
EXPECTED TARGETS & OBJECTIVES (Cat Scorecard)
EXECUTION Efficiency
GUEST RELATIONS
GO-TO-MARKET STRATEGIES (Category Strategies)
OUTSTANDING Experience
OPERATIONAL OPTIMISATION (Category Tactics)
RESPONSIBLE Work-Life-Environment Balance
RIGOR OF EXECUTION (Category Implementation)
YIELD MATRICES – Comprehension & Empowerment YIELD REVIEW & M-A-C-D (Category Review)
rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008