Progressive Grocer

DEC 2015

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8 | Progressive Grocer | 2016 Category Management Handbook | December 2015 the various changes mentioned above are refected in 2.0. Our intention is to ensure that every aspect of category management refects the new marketing environment." Because category management is a collaborative process, the enhancements to the process incorporated in CatMan 2.0 can't be efectively deployed without the collaboration of all of the key participants: manu- facturers, retailers and solution providers, including sales and marketing agencies. CMA is partnering with Deerfeld, Ill.-based Stagnito Business Information, publisher of Pro- gressive Grocer, to familiarize the industry with the CatMan 2.0 enhancements. "Te companies on the CatMan 2.0 steering committee will play an impor- tant role in leading the deployment of what is essen- tially an upgraded, more sophisticated 'language' with which trading partners communicate," Wade says. "We anticipate that the changes in data and analytics will afect virtually every step in the process." Key Improvements Wade notes that CatMan 2.0 will emphasize several areas that he acknowledges were neglected in Cat- Man 1.0. "Specifcally, we will be focusing on better internal preparation and alignment within both manufacturers and retailers," he says. "We will be incorporating shopper marketing into the overall category management process, primarily because shopper marketing from the retailer's perspective is a tactic incorporated within annual plans in vari- ous categories." Additionally, 2.0 will focus on improved deploy- ment of category plans at the store level. "We will try to develop methods computing the ROI of cat- egory management, a particularly challenging but highly desired aspect of CatMan 2.0," Wade says. "Lastly, we are tackling the omni-channel challenge as it relates to category management." CatMan 2.0 is likely to play a signifcant role in defning what category management means for the next decade or so, Jairaj declares. "We are already seeing a tremendous shift from a procurement- focused process to a shopper-focused process, with retailers who are able to best execute this shift po- tentially possessing a competitive advantage in the industry," he says. "CatMan 2.0 will better defne the processes dictating that shift, and potentially even what could lie beyond." Making it Happen What arguments are essential to persuading retail- ers and CPG companies of the importance of Cat- Man 2.0 standards? "In the highly competitive CPG industry, the pressures of competition will drive industry partici- pants to embrace best practices," Wade says. "In- evitably, some participants will adopt the enhanced concepts in 2.0 more rapidly than others … simply because virtually all the participants have a basic knowledge of category management, and therefore are not adopting a whole new 'language.'" Indeed, some leading-edge industry participants, both retailers and manufacturers, are already em- ploying key components of the updated program, he notes, especially in the software and analytics areas. "But we anticipate that virtually every industry participant will take a close look at CatMan 2.0 to see where and how they will need to upgrade their practices and capabilities to stay competitive in the rapidly changing CPG environment," Wade says. Completing the complex and sophisticated overhaul is a "daunting challenge," Wade acknowl- edges, adding, "We believe the entire task can be completed in the frst quarter of 2016, including [deployment] of the new work streams in a digital database that can be searched at no cost by members of the CMA." Following an introductory webinar hosted by PG in early 2016, Wade anticipates a series of work- shops to familiarize the industry with CatMan 2.0 toward the end of the frst quarter of 2016. Its adoption is crucial, King asserts: "Grocery retailers have more competition today than ever, from other channels and online." Jairaj adds: "Te speed of change has been im- mense, and the life cycles of businesses across all industries, not just retail, continue to be compressed more and more than at any other point in history. Te question really becomes, can you, as a retailer or manufacturer, aford to not adapt to such a drastically changing landscape by embracing a new perspective on category management that is just as dynamic as that landscape?" PG "Can you, as a retailer or manufacturer, afford to not adapt to such a drastically changing landscape by embracing a new perspective on category management that is just as dynamic as that landscape?" —Prashant Jairaj, Red Bull North America catman 2.0

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