gmdc conference presentation
TRANSCRIPT
Presented by: Eric TogneriDate: 04/15/2023
The Category Management ProcessDriving collaboration in General Merchandise categories
Thank you to our Sponsor!
for sponsoring today’s workshop
A quick introduction to CPG CatNet…
Presenter: Eric TogneriPrincipal, CPG CatNet
HBW and Food and Beverage companies score the highest ratings in Category Management…
45.5%
36.2%
24.2%
12.5%10.9%
9.9% 9.9%7.6% 7.6% 7.4%
P&G KR GM PC Nes Camp U AB FL K
Source: Cannondale Associates, PoweRanking Survey 2005
Which Manufacturers Best Practice Category Management?
GM is noticeably absentfrom this list
Category management is important to retailers…
Grocery
C-Store
Mass
Drug
Club
Source: Cannondale CMAR Study 2004
82%82%
86%
83%
82%
65%
67%
% retailers rating category management “very or extremely important”
Channel Ratings Overall Rating
Category Management process has evolved to an improved collaborative process…
Category DefinitionCategory Definition
Category RoleCategory Role
Category AssessmentCategory Assessment
Category StrategyCategory Strategy
Category ScorecardCategory Scorecard
Category TacticsCategory Tactics
Plan ImplementationPlan Implementation
Category ReviewCategory Review
Category Management Marketing at Retail
Past Future
Fact FindingInvestigation
Measurement
Execution
Case Building
Path to Success
This transition is leading to marked changes in supplier / retailer collaboration…
Category DefinitionCategory Definition
Category RoleCategory Role
Category AssessmentCategory Assessment
Category StrategyCategory Strategy
Category ScorecardCategory Scorecard
Category TacticsCategory Tactics
Plan ImplementationPlan Implementation
Category ReviewCategory Review
Category Management Marketing at Retail
Canned
Category
Generic
Custom
Solution
Differentiate
Fact FindingInvestigation
Measurement
Execution
Case Building
Path to Success
Category Management process combines collaboration, behind the scenes work, and retail execution to achieve results…
Marketing at Retail Approach
Fact FindingInvestigation
Measurement
Execution
Case Building
Finding out what is important
Look to the datafor answers
Making itHappen
ContinuousImprovement
Plan toWin
Investigation leads to common understanding of the retailer objectives…
It is very important for retailers to know that suppliers fully understand their goals and objectives
Conducting a dialogue where investigating and aligning with retailer objectives is evidence of a suppliers commitment
This is the type of approach that builds credibility and collaboration for the supplier and the retailer
A more solid direction and better plans are then built on a solid foundation
Investigation can be both formal and informal…
Formal
Conducting a meeting where the sole purpose is understanding the retailer
Integrating into the agenda on formal meetings and conversations
Informal
Investigation is a mindset, take the opportunity whenever it presents itself
How the formal investigation meeting works…
Who attends… The appropriate decision makers from merchandising, marketing
and logistics. All of the key players should be involved
What it is… A minimum of one hour meeting, ideally longer with clearly defined
purpose
Where does it take place… In a place free of interruption
How often… At least one time per year or more often when necessary
How to conduct… Probe and align….do not raise!
Conduct a post-meeting analysis of retailer objectives and create an action plan…
RetailerObjectives
Supplier Capabilities Prioritization
To build category loyalty Brand loyalty initiative and consumer understanding
High
To maintain category market share
Channel growth initiative Low
To improve internal IT systems
Out of scope N/A
Fact finding uncovers what information is availableto address retailer objectives…
Tap into multiple data sources to uncover insights Point of Sale / Syndicated Research Topic relevant research Consumer research Demographic and psychographic research
Bucket all of the relevant insights against the appropriate retailer objectives
Take a step back and look at what the totality of evidence is indicating
Fact FindingInvestigation
Measurement
Execution
Case Building
Building a good case creates a compelling call to action…
The facts drive the direction of the story
A compelling story is a compilation of facts that lead to a conclusion
A credible conclusion is a summary of facts
A call to action creates a course of direction that should be taken as a result of the insights
Fact FindingInvestigation
Measurement
Execution
Case Building
The facts of the case are compiled from multiple sources…
Retailer InputUncovered Through
Investigation
3rd Party DataEither Purchased
or Public
Sales andMarketingInitiatives
Internal DataAvailablefor Use
Compelling Case
The case for action follows these steps…
Specifics
Action Plan
Benefits
Issue/Opportunity
Retailer Solution1
2
3
4
5
The presentation of a solid case is simple to follow, well supported and leads to a conclusion…
Description
Conclusion
Headline
Interminable vs. Concise
Headline
$5,000 $10,000 $3,500
$5,000 $10,000 $7,000
$5,000 $10,000 $10,500
$5,000 $10,000 $14,000
$5,000 $10,000 $17,500
$5,000 $10,000 $21,000
$5,000 $10,000 $24,500
$5,000 $10,000 $28,000
$5,000 $10,000 $31,500
The best laid plans must be executed…
The retailer has to fully support the case and conclusion
A retail plan needs to be put in place that outlines the steps that need to be taken
Responsibilities assigned with strict accountability
Accomplish the plan…so we can measure the results
Fact FindingInvestigation
Measurement
Execution
Case Building
Measure is the most important step toward continuous improvement…
There is no way to know if you are achieving if you are not keeping score
Make sure that the right thing is being measured
“Measure twice cut once”
Don’t kill the messenger…focus on what the message is conveying and why
Fact FindingInvestigation
Measurement
Execution
Case Building
There are numerous positive outcomes that will result from measurement…
Category Management objectives are both clearly understood and how they will be measured
Consistent measurement will enhance credibility over time as a track record is established and built upon
Measurement brings the process full circle and provides a bridge to starting the process over again
A true partnership is the confluence of objectives leading ultimately to true collaboration…
Supplier Opportunities
Retailer Opportunities
RetailerObjectives
SupplierObjectives
CooperativeMeasurement
Collaboration
Presented by: Eric TogneriDate: 04/15/2023
The Category Management ProcessQuestions & Answers