类管理流程英文PPT.ppt 38页

CATEGORYMANAGEMENT SessionObjectives:DefineCategoryManagement(CM)DescribeCategoryManagementasaBusinessProcessDiscussCriticalIssuesRelatedtoSuccessfullyDevelopingaCategoryManagementSystemCategoryManagementProcessCategoryManagementIssuesDefineCategoryManagement DefinitionBringingBetterValuetotheConsumeristhePrimaryFocusofCategoryManagement.“ARetailer-SupplierprocessofmanagingcategoriesasStrategicBusinessUnits,producingimprovedsalesandprofitresultsbyfocusingonsatisfyingconsumerneedsanddeliveringconsumervalue.”Source:ECRBestPracticesReport CategoryManagementhasexpandingintodurablegoodsandservices.IsCategoryManagementjustforthegrocer?DurableGoodsAutoIndustry-GMPontiac&FordServiceIndustryPhoneServiceFinancialServices/BanksDefinition TheECRSystemTimely,accurate,paperlessinformationflowSupplierDistributorRetailStoreConsumerHouseholdSmooth,continualproductflowmatchedtoconsumptionDefinition EfficientPromotionEfficientStoreAssortmentDefinitionCategoryManagementisattheatthecoreofECR.CMprovidesaprocess&frameworkforcollaboration.EfficientNewProductDevelopmentEfficientReplenishmentCATEGORYMANAGEMENT CategoryManagementasaBusinessProcessiscomprisedofinterrelatedcomponentsbothwithinandoutsideoftheorganization.WhatisCategoryManagement?DefinitionInformationTechnologyStrategy&BusinessProcessScorecardCollaborativeRelationshipsOrganizationCapabilitiesCoreEnablersEnablers CATEGORYMANAGEMENT:HOWISITDIFFERENT?Category/Brand/SKUManagementunderoneDecisionMakerConsumer-FocusedStrategiesData-basedDecisionMakingProactiveBusinessPlanningCollaborativeWorkProcessManageCategoryAsBusinessUnitFocusedonCategoryROI-NOTSalesorGrossMarginDefinition SKILLSNEEDEDTOBUILDBUSINESSTHROUGHCATEGORYMANAGEMENTDataanalysisandtechnicalmasteryShopperandconsumerunderstandingStrategydevelopmentFinancialandlogisticsexpertiseInnovationTotalSystemsFocusDefinition DefinitionWhyisitbeneficialforRetailersandManufacturerstoInvestinCategoryManagement?HelpsRetailers-DefinecustomerneedsDeterminestrategicissuesEnhancecategoryandstoreprofits DefinitionWhyisitbeneficialforRetailersandManufacturerstoInvestinCategoryManagement?HelpsRetailers-DefinecustomerneedsDeterminestrategicissuesEnhancecategoryandstoreprofitsHelpsManufacturers-PositionthemselvesascategorycaptainsforretailersBecomeanindispensableresourcefortheretailerEnhancebrandprofits RoadMapCategoryManagementasaBusinessProcessCategoryManagementIssuesDefineCategoryManagement ProcessCategoryManagementasaBusinessProcess.CategoryDefinitionCategoryRoleCategoryAssessmentCategoryScorecardCategoryStrategiesCategoryTacticsPlanImplementationCategoryReviewSource:ThePartneringGroup WhatisaCategory?Adistinct,manageablegroupofproducts/servicesthatCONSUMERSperceivetobeinterrelatedand/orsubstitutableinsatisfyingtheirneed(s).ProcessCategoryDefinition-criticalindeterminingtheproductsthatmakeupthecategoryandinestablishingthesegmentationstrategy. WhatisaCategory?Adistinct,manageablegroupofproducts/servicesthatCONSUMERSperceivetobeinterrelatedand/orsubstitutableinsatisfyingtheirneed(s).ProcessCategoryDefinition-criticalindeterminingtheproductsthatmakeupthecategoryandinestablishingthesegmentationstrategy.Howdoesdefiningacategoryhelp?Producesbetterretailer/manufactureralignmentwiththeconsumerCreatesbettermanufacturer-retaileralignmentGivesnewperspectivesonhowtoviewaproductand/orcategory ProcessJuices&drinksShelfstableRefrigeratedFrozenGlass/PlasticAsepticReadytoServeConcentrateCategorySub-CategorySegmentSub-SegmentDefiningaCategorybyUsageSegmentLemonJuiceSegmentation:Source:Borden,Inc. ProcessCategoryRole(orpurpose)defineshowtheconsumerviewsthecategory.PossibleCategoryRoles:DestinationConvenienceRoutineSeasonal/Occasional ProcessCategoryAssessmentCategoryAssessmentinvolvesconductingacompleteanalysisofthecategorybyinvestigatingit’ssub-categories,user-segments,brands,andSKUs.Suchananalysismustbebasedoncurrentconsumer,distributor,supplierandmarketinformation. ProcessOneexamplemightbeidentifyingthegapbetweenthecurrentsalesandthepotentialsalesofacategory.Source:Borden,Inc. ProcessKeyQuestionsinConductingaCategoryAssessmentWhoismytargetcustomer?Howimportantisthiscategorytothatcustomer?Whatarethecategorytrends?volume,share,profits?Whatarethekeyproductsegments?WhataretheleastandmostimportantSKUs? ProcessKeyQuestionsinConductingaCategoryAssessment(continued)HowwellisshelfspacealignedtoSKUmovement?Howdoconsumersviewbrands?BrandnamesversusstorebrandsWhentheymakeapurchase,Howlargeisit?Whatelsedotheybuy?Howdoesthecategory’spricingcomparetotherestofthestore? ProcessKeyQuestionsinConductingaCategoryAssessment(continued)Howdoesthecategory’spricingcomparetothemarket?Whatpercentageofvolumeissoldonpromotion?Whatistheimpactoffeaturinganddisplay?Whatbrandsandsizes“define”and/orbuildthecategory? ProcessTheCategoryScorecardmeasuresandmonitorstheprogressandperformanceofthecategorybusinessplan.Targetsorhurdleratesmustbeclearlystated.RevenueMarketShareConsumption(Equiv.Volume)Out-of-stocksProfitTargetConsumerShareROI ProcessCategoryStrategiesdefinethemarketing,productsupply,andinstoreservicerequiredtomeettargetsorhurdlerates.TransactionEfficiency/TrafficBuilderShopping/InformationEntertainmentTypesofstrategies:Source:RobertC.Blattberg,1996 ProcessCategoryTacticsaretheactionstakentoimplementthecategorystrategies.Transactionefficiency/TrafficBuilder>Lowprice/convenience>Categoryshop-abilitySource:RobertC.Blattberg,1996 ProcessCategoryTacticsaretheactionstakentoimplementthecategorystrategies.Transactionefficiency/TrafficBuilder>Lowprice/convenience>Categoryshop-abilityShopping/information>Uniqueofferings/highservice>EasyaccesstoproductinformationSource:RobertC.Blattberg,1996 ProcessCategoryTacticsaretheactionstakentoimplementthecategorystrategies.Transactionefficiency/TrafficBuilder>Lowprice/convenience>Categoryshop-abilityShopping/information>Uniqueofferings/highservice>EasyaccesstoproductinformationEntertainment>Stimulation/excitement>Creativemarketing/broadassortment>ChangingvarietyofproductsSource:RobertC.Blattberg,1996 ProcessCategorymanagementplansareoflittlevalueunlesstheyreceivehighqualityimplementation.KeyComponentsofPlanImplementation:CommonLanguageBuy-inatALLlevelsClearApprovalProcessClearAssignmentofResponsibilitiesImplementationSchedulePredeterminedIndicatorsofSuccess ProcessCategoryReviewistheongoingmeasurementoftheprogressoftheplanandmodificationwherenecessary.StagesofCategoryReview:OpportunityanddiscoveryprocessInput,analysis&implementationMeasurement,adjustment&learning CATEGORYMANAGEMENTReviewingtheCategoryTargetingConsumersPlanningMerchandisingImplementingStrategyEvaluatingResultsProcess RoadMapCategoryManagementProcessCategoryManagementIssuesCategoryManagementDefinition CategoryManagementisasourceofcompetitiveadvantage.Ifitissoeasytodoandeveryoneisdoingit,whereistheadvantage?CategoryManagementisaboutstrategicchoices.Thequalityoftheimplementationandexecutionwilldeterminethedegreeofcompetitiveadvantagegained.Issues CategoryManagementisadynamic,evolvingpractice.Isthereoneapproach?…no.Fundamentalprinciplesandprocesses.Implementationdependsuponthecapabilitiesandcurrentpracticesoftheorganizations.Today’spracticesaretomorrow’sfoundationsforimprovement.Issues SuccessfulCategoryManagementhelpstodefineapartnership.AbilityandcommitmenttodevelopthecategoryAvisionofthepotentialofthecategoryAdequateinformationtechnologycapabilityandsharinginformationMultifunctionalteamsupportcapabilitiesBuy-infromtopmanagementClearlydefinestheroleofthemanufacturerwithregardtoCategoryManagementTrustIssues HowtodevelopasuccessfulCategoryManagementrelationship.DevelopacommonlanguageforCategoryManagementTranslatethegoalsofthepartnershipintoausableandmeasurableplantheutilizesfact-basedCMdecisionsandpractices.Educateeveryoneinvolved,buyersandsuppliers,ontheapproachbeingtakenforgrowingthecategory.Developfact-basedpresentationsrepresentingtheentirecategory.Developasystemofregularreportsandmonitoringforcatchingcategorytrendsandopportunities.IRI1995Issues CommonObstaclestoSuccessfulCategoryManagement.MistakenbeliefthattheorganizationisalreadydoingCategoryManagement.Lackofmanagementcommitment.Lackoftimelyandeasytouseinformationforcategoryassessment.Inadequateknowledgeormisinformationabouttheconsumercharacteristics/demandforthecategory.Manageriallackoftrainingorabilities.Non-standardproductorpricingforthecategory.Issues TheManufacturershouldkeeptheirCategoryManagementanalysishonest.Manufactureroftendoestheinitialanalysis.FinancialresourcesPotentialbenefitInitialindicatorsmaybodepoorlyforthemanufacturer’sproduct-butmustacceptlosses.Solution:GetMarketingandothersinvolved.Talkwithyourdistributorandbuysometime.Fixtheproduct.Iftheanalysisisright,somethingneedstochangetoaddresstheshortcomingsperceivedbytheconsumers.Issues CATEGORYMANAGEMENTQuestions?