Progressive Grocer

2017 Category Management Handbook

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December 2016 | | 7 pharmacies. Drug stores sell food, and c-stores sell fast food. DIY retailers sell many CPG categories, and Amazon sells almost everything. Shoppers have changed. ey're more diverse, even more time-starved, and more concerned with health and wellness. Equally important, today's shopper has more information about product choices than ever before. Some retailers with loyalty cards know more about their shoppers, but shop- pers know more about all retailers and all product choices than ever before. e data available today have multiplied in volume and type. Today, the CPG community has an astounding tsunami of data, with more com- ing every day. No CatMan practitioner — neither retailer nor manufacturer nor solution provider — has managed to integrate all of the new data into a comprehensive approach. Everyone is struggling to keep pace with the explosion of data. Fortunately, sophisticated new analytics have emerged to make sense of the data and their im- plications. Machine learning is beginning to help. New software packages are enabling automatic up- dating of reports created from multiple data sources. is saves time for the besieged analysts to develop insightful conclusions. e combined effects of changes in retailers, shoppers, data and analytics mean that everything has changed, and CatMan 2.0 reflects all of these changes. What's New in the Process Itself? e new CatMan 2.0 process, shown below, offers five major changes: An initial internal alignment step: Here, the manufacturers and retailers develop internal align- ment on the data, the insights and the strategies they'll deploy in the joint business-planning process. is step is aimed at requiring the practitioners to use available data to gain internal clarity regarding all aspects of the category. It's "knowing what you know," and knowing what you want to achieve in the category, based on the data and analytics, shop- per insights, and behaviors that are important. is important internal alignment step was omitted from CatMan 1.0. Assessment "why": is is another completely new step in the process. In CatMan 1.0, the assess- ment step was backward-looking, aimed at under- standing what had happened at the retailer, in the market, and with shoppers and competitors. CatMan 2.0 adds the assessment "why" step to understand why change is occurring and what's driving changes in behavior. CatMan 2.0 looks intently for insights. is new step of the "why" behind the buy provides the latest techniques for developing these often emo- tional or experiential drivers of shopper behavior. Shopper marketing and the path to purchase: CatMan 2.0 solves one of the continuing controver- sies in CPG marketing: the relationship of CatMan and shopper marketing (SM). CatMan 2.0 positions shopper marketing as a tactic within the annual category plan. e logic is simple: Shopper market- ing succeeds when it's deployed in store. e retail category manager controls access to the marketing plan. Unless the SM plan fits within the category plan, it'll be sub-optimized. erefore, CatMan 2.0 mandates a multifunctional shopper marketing de- velopment approach integrated into CatMan. is new step should help practitioners struggling with SM and CatMan internal relationships to function more productively. Deployment: Unfortunately, deployment was virtually ignored in CatMan 1.0. As a result, practitioners struggled to get agreed category plans deployed in an optimal manner. CatMan 2.0 ad- dresses this shortcoming with a comprehensive new deployment process step. CatMan 2.0 creates a new vantage point from which we can see the path to the future. Internal Alignment Category Definition Category Ride Category Assessment Category Scorecard Category Strategy Category Tactics Plan Implemention Organizational Design and Development Definition CDT What products are included? What are the subcategories? Assessment What, Assessment Why Internal agreement on objectives and strategies How Important is the category to the consumer? To the retailer? Assortment Pricing, Promotion, Shelf Merchandising, Shopper Marketing Deployment, Supply Chain, ROI Who buys the category? What are they buying? What are the goals and objectives? How will we measure success? How are we going to achieve the objectives? What are the elements of the plan for each subcategory or segment? Who does what, and when? Catman 1.0 Catman 2.0 Key Process Steps Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 CatMan 1.0: "Shopper Facts" Behavior Assessment: Who, what, when, where, how is the category bought? CatMan 2.0: "Shopper Insights" Attitudinal & Perceptual Assessment: Why is the category bought? Drives Shopper Marketing Builds brand and banner equity, driven by facts and shopper insights. The Ultimate CatMan Advantage

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