品类管理流程CATEGORYMANAGEMENT

品类管理流程CATEGORYMANAGEMENT第1页/共39页CATEGORYMANAGEMENT第2页/共39页SessionObjectives:DefineCategoryManagement(CM) DescribeCategoryManagement asaBusinessProcess DiscussCriticalIssuesRelatedto SuccessfullyDevelopinga CategoryManagementSystemCategoryManagementProcessCategoryManagementIssuesDefineCategoryManagement第3页/共39页DefinitionBringingBetterValuetotheConsumeristhe

PrimaryFocusofCategoryManagement.“ARetailer-SupplierprocessofmanagingcategoriesasStrategicBusinessUnits,producingimprovedsalesandprofitresultsbyfocusingonsatisfyingconsumerneeds

anddeliveringconsumervalue.”Source:ECRBestPracticesReport第4页/共39页CategoryManagementhasexpandingintodurablegoodsandservices.IsCategoryManagementjustforthegrocer? DurableGoodsAutoIndustry-GMPontiac&Ford ServiceIndustryPhoneServiceFinancialServices/BanksDefinition第5页/共39页TheECRSystemTimely,accurate,paperlessinformationflowSupplierDistributorRetailStoreConsumerHouseholdSmooth,continualproductflowmatchedtoconsumptionDefinition第6页/共39页EfficientPromotionEfficientStoreAssortmentDefinitionCategoryManagementisattheatthecoreofECR.CMprovidesaprocess&frameworkforcollaboration.EfficientNewProductDevelopmentEfficientReplenishmentCATEGORYMANAGEMENT第7页/共39页CategoryManagementasaBusinessProcessiscomprisedofinterrelatedcomponentsbothwithinandoutsideoftheorganization.WhatisCategoryManagement?DefinitionInformationTechnologyStrategy&BusinessProcessScorecardCollaborativeRelationshipsOrganizationCapabilitiesCoreEnablersEnablers第8页/共39页CATEGORYMANAGEMENT:

HOWISITDIFFERENT?Category/Brand/SKUManagementunderoneDecisionMakerConsumer-FocusedStrategiesData-basedDecisionMakingProactiveBusinessPlanningCollaborativeWorkProcessManageCategoryAsBusinessUnitFocusedonCategoryROI -NOTSalesorGrossMarginDefinition第9页/共39页SKILLSNEEDEDTOBUILDBUSINESSTHROUGHCATEGORYMANAGEMENTDataanalysisandtechnicalmasteryShopperandconsumerunderstandingStrategydevelopmentFinancialandlogisticsexpertiseInnovationTotalSystemsFocusDefinition第10页/共39页DefinitionWhyisitbeneficialforRetailersandManufacturerstoInvestinCategoryManagement?HelpsRetailers-DefinecustomerneedsDeterminestrategicissuesEnhancecategoryandstoreprofits第11页/共39页DefinitionWhyisitbeneficialforRetailersandManufacturerstoInvestinCategoryManagement?HelpsRetailers-DefinecustomerneedsDeterminestrategicissuesEnhancecategoryandstoreprofitsHelpsManufacturers-PositionthemselvesascategorycaptainsforretailersBecomeanindispensableresourcefortheretailerEnhancebrandprofits第12页/共39页RoadMapCategoryManagementasaBusinessProcessCategoryManagementIssuesDefineCategoryManagement第13页/共39页ProcessCategoryManagementasaBusinessProcess.CategoryDefinitionCategoryRoleCategoryAssessmentCategoryScorecardCategoryStrategiesCategoryTacticsPlanImplementationCategoryReviewSource:ThePartneringGroup第14页/共39页WhatisaCategory?Adistinct,manageablegroupofproducts/servicesthatCONSUMERSperceivetobeinterrelatedand/orsubstitutableinsatisfyingtheirneed(s).ProcessCategoryDefinition-criticalindeterminingtheproductsthatmakeupthecategoryandinestablishingthesegmentationstrategy.第15页/共39页WhatisaCategory?Adistinct,manageablegroupofproducts/servicesthatCONSUMERSperceivetobeinterrelatedand/orsubstitutableinsatisfyingtheirneed(s).ProcessCategoryDefinition-criticalindeterminingtheproductsthatmakeupthecategoryandinestablishingthesegmentationstrategy.Howdoesdefiningacategoryhelp?Producesbetterretailer/manufactureralignmentwiththeconsumerCreatesbettermanufacturer-retaileralignmentGivesnewperspectivesonhowtoviewaproductand/orcategory第16页/共39页ProcessJuices&drinksShelfstableRefrigeratedFrozenGlass/PlasticAsepticReadytoServeConcentrateCategorySub-CategorySegment Sub-SegmentDefiningaCategorybyUsageSegmentLemonJuiceSegmentation:Source:Borden,Inc.第17页/共39页ProcessCategoryRole(orpurpose)defineshowtheconsumerviewsthecategory.PossibleCategoryRoles:

DestinationConvenienceRoutine

Seasonal/Occasional第18页/共39页ProcessCategoryAssessmentCategoryAssessmentinvolvesconductingacompleteanalysisofthecategorybyinvestigatingit’ssub-categories,user-segments,brands,andSKUs.Suchananalysismustbebasedoncurrentconsumer,distributor,supplierandmarketinformation.第19页/共39页ProcessOneexamplemightbeidentifyingthegapbetweenthecurrentsalesandthepotentialsalesofacategory.Source:Borden,Inc.第20页/共39页ProcessKeyQuestionsinConductingaCategoryAssessment

Whoismytargetcustomer?Howimportantisthis categorytothatcustomer?Whatarethecategorytrends?

volume,share,profits?Whatarethekeyproductsegments?Whataretheleastandmost importantSKUs?第21页/共39页ProcessKeyQuestionsinConductingaCategoryAssessment(continued)

Howwellisshelfspacealignedto SKUmovement?Howdoconsumersviewbrands? BrandnamesversusstorebrandsWhentheymakeapurchase, Howlargeisit? Whatelsedotheybuy?Howdoesthecategory’spricing comparetotherestofthestore?第22页/共39页ProcessKeyQuestionsinConductingaCategoryAssessment(continued)

Howdoesthecategory’spricing comparetothemarket?Whatpercentageofvolumeissold onpromotion?Whatistheimpactoffeaturingand display?Whatbrandsandsizes“define” and/orbuildthecategory?第23页/共39页ProcessTheCategoryScorecardmeasuresandmonitorstheprogressandperformanceofthecategorybusinessplan.Targetsorhurdleratesmustbeclearlystated.RevenueMarketShareConsumption(Equiv.Volume)Out-of-stocksProfit

TargetConsumerShareROI第24页/共39页ProcessCategoryStrategiesdefinethemarketing,productsupply,andinstoreservicerequiredtomeettargetsorhurdlerates.

TransactionEfficiency/TrafficBuilderShopping/InformationEntertainment Typesofstrategies:Source:RobertC.Blattberg,1996第25页/共39页ProcessCategoryTacticsaretheactionstakentoimplementthecategorystrategies.Transactionefficiency/TrafficBuilder

>Lowprice/convenience >Categoryshop-abilitySource:RobertC.Blattberg,1996第26页/共39页ProcessCategoryTacticsaretheactionstakentoimplementthecategorystrategies.Transactionefficiency/TrafficBuilder

>Lowprice/convenience >Categoryshop-ability

Shopping/information

>Uniqueofferings/highservice >EasyaccesstoproductinformationSource:RobertC.Blattberg,1996第27页/共39页ProcessCategoryTacticsaretheactionstakentoimplementthecategorystrategies.Transactionefficiency/TrafficBuilder

>Lowprice/convenience >Categoryshop-ability

Shopping/information

>Uniqueofferings/highservice >Easyaccesstoproductinformation

Entertainment

>Stimulation/excitement >Creativemarketing/broadassortment>Changingvarietyofproducts

Source:RobertC.Blattberg,1996第28页/共39页ProcessCategorymanagementplansareoflittlevalueunlesstheyreceivehighqualityimplementation.KeyComponentsofPlanImplementation:

CommonLanguageBuy-inatALLlevelsClearApprovalProcessClearAssignmentofResponsibilitiesImplementationSchedulePredeterminedIndicatorsofSuccess第29页/共39页ProcessCategoryReviewistheongoingmeasurementoftheprogressoftheplanandmodificationwherenecessary.StagesofCategoryReview:

OpportunityanddiscoveryprocessInput,analysis&implementationMeasurement,adjustment&learning第30页/共39页CATEGORYMANAGEMENTReviewingtheCategoryTargetingConsumersPlanningMerchandisingImplementingStrategyEvaluatingResultsProcess第31页/共39页RoadMapCategoryManagementProcessCategoryManagementIssuesCategoryManagementDefinition第32页/共39页CategoryManagementisasourceofcompetitiveadvantage.

Ifitissoeasytodoandeveryoneisdoingit, whereistheadvantage?CategoryManagementisaboutstrategic

choices.Thequalityoftheimplementationandexecutionwilldeterminethedegreeofcompetitiveadvantagegained.Issues第33页/共39页CategoryManagementisadynamic,evolvingpractice.Isthereoneapproach?…no.Fundamentalprinciplesandprocesses.Implementationdependsuponthecapabilitiesandcurrentpracticesoftheorganizations.Today’spracticesaretomorrow’sfoundationsforimprovement.Issues第34页/共39页

SuccessfulCategoryManagement

helpstodefineapartnership.AbilityandcommitmenttodevelopthecategoryAvisionofthepotentialofthecategoryAdequateinformationtechnologycapabilityand sharinginformationMultifunctionalteamsupportcapabilitiesBuy-infromtopmanagementClearlydefinestheroleofthemanufacturerwithregardtoCategoryManagementTrustIssues第35页/共39页

HowtodevelopasuccessfulCategoryManagementrelationship.DevelopacommonlanguageforCategoryManagementTranslatethegoalsofthepartnershipintoausableandmeasurableplantheutilizesfact-basedCMdecisionsandpractices.Educateeveryoneinvolved,buyersandsuppliers,ontheapproachbeingtakenforgrowingthecategory.Developfact-basedpresentationsrepresentingtheentirecategory.Dev