Helps Manufacturers Position themselves as category captains for retailers Become an indispensable resource for the retailer Enhance brand profits
Why is it beneficial for Retailers and
Definition
Manufacturers to Invest in Category Management?
Helps Retailers Define customer needs Determine strategic issues Enhance category and store profits
CATEGORY MANAGEMENT
Session Objectives: Define Category Management
Category Management
Process
Category Management
Issues
Define Category Management (CM)
Describe Category Management as a Business Process
Definition
“A Retailer-Supplier process of managing categories as Strategic Business Units, producing improved sales and profit results by focusing on satisfying consumer needs and delivering consumer value.”
- NOT Sales or Gross Margin
SKILLS NEEDED TO BUILD BUSINESS Definition THROUGH CATEGORY MANAGEMENT
Data analysis and technical mastery Shopper and consumer understanding Strategy development Financial and logistics expertise Innovation Total Systems Focus
Definition
Efficient New Product Development
Efficient
CATEGORY Efficient
Replenishment MANAGEMENT Promotion
Efficient Stor e Assortment
Category Management as a Business Process is comprised of interrelated components both within and outside of the organization.
Source: ECR Best Practices Report
Category Management has expanding into durable goods and services.
Definition
Is Category Management just for the grocer? Durable Goods
What is Category Management?
Definition
Information Technology
Enablers
Scorecard
Core
Strategy &
Business Process
Organization Capabilities
Enablers
Collaborative Relationships
Why is it beneficial for Retailers and
Definition
Manufacturers to Invest in Category Management?
Helps Retailers Define customer needs Determine strategic issues Enhance category and store profits
ቤተ መጻሕፍቲ ባይዱ
Supplier
Distributor
Retail Store
Consumer Household
Smooth, continual product flow matched to consumption
Category Management is at the at the core of ECR. CM provides a process & framework for collaboration.
Discuss Critical Issues Related to Successfully Developing a Category Management System
Bringing Better Value to the Consumer is the Primary Focus of Category Management.
Auto Industry - GM Pontiac & Ford
Service Industry Phone Service Financial Services/Banks
The ECR System
Definition
Timely, accurate, paperless information flow
CATEGORY MANAGEMENT: HOW IS IT DIFFERENT?
Definition
Category/Brand/SKU Management under one Decision Maker
Consumer-Focused Strategies Data-based Decision Making Proactive Business Planning Collaborative Work Process Manage Category As Business Unit Focused on Category ROI