Progressive Grocer

2017 Category Management Handbook

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December 2016 | | 23 is focused on the shopper, with the what, where, when, how and why focused on their behavior. Being able to engage the shopper at any time in any venue, providing them with the same shopping experience regardless of the retailer, is what must be done today. is is also referred to as an omni- shopping experience. Today, we can not only see into a home, we can also gain understanding of the needs, wants and beliefs of each individual person in that household. is could not be done in 1.0. Further enrich- ing our knowledge of the shopper, we now have retailers with their own "card" data, which helps us "predict" using new algorithms not in existence in 1.0, such as what they want to buy even before they come to buy. ese are produced in the marketplace as key reminders during the actual shopping experience, and are mostly used in digital with e-commerce. We have taken daypart-buying understanding to an entirely new level with our shopper data. Analytics Today, the term "Big Data" is used to describe the multitude of new data not available to us in 1.0. Loyalty card, POS, panel, shipments, digital, e-commerce and diary are all examples of new data that must be synthesized to produce knowledge for us to make better decisions faster. An example best illustrates what's available today in analytics: A line review is what retail- ers do to analyze their upcoming assortment; it's space management in terms of both arrangement and metrics such as days of supply, packout, etc. ey want these elements wrapped around insights to enable them to make the shopping experience better, delivering on their own internal metrics for growth. In 1.0, a typical line review took a manufacturer from one to two weeks to build. Today, with our new analytics capability, that same line review can be built in less than two minutes with mul- tiple sources of data. is changes the paradigm completely. In 1.0, there was a rush, with all time invested just to build the review. Today, most of the time is now devoted to "what-if " thinking before the review. Are the right people at the line review meeting? What will be the objections of the re- tailer? Who will answer them? is provides for a much better, more collaborative line review, and is a great example of our new analytic capabilities. Pricing is also vastly enhanced for assessment in 2.0. In 1.0, we were happy just with price elasticity in total. Today, we can understand pricing in the context of multiple demographics and pricing by attributes. We can also gain understanding of what we call "psychological pricing," which is going beyond simple elasticity to get into the mind of the shopper. Insights What we call insights wasn't really used in 1.0. All focus was on what we call observations: the what, where, when, how and who. Today, whole observa- tions are still important in understanding that the "why" drives all that we do. To better understand the why, there are much more robust areas of shopper research not available in 1.0. A great example is virtual shopping. Today, to help us better assess shoppers, we can place them in a virtual world and find out what they actually do, versus what they said was their intent. In 1.0, everything recorded what consumers said they wanted to do. Many times, we found out that what they said wasn't what they actually did. Today, in the virtual world, we can actually see and measure what shoppers do, without having to interfere with our retailers. In 2.0, having the ability to build an omni- shopper marketing plan, with as- sessment firmly embedded incor- porating the shopper, insights and new analytics, is key for success. PG Craig Hodnett is SVP of client solutions at Kansas City, Mo.-based Decision Insight. Having the ability to build an omni-shopper marketing plan, with assessment firmly embedded incorporating the shopper, insights and new analytics, is key for success.

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