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* Category Management Understanding the consumer as key to success Dionisio Seissus García Ana Cláudia Fioratti ESOMAR, México – October 2004 Consumer Panel Methodology Continuous Research that has the main objective to understand the same group of households, the spontaneous purchase behavior of consumers. Diary Purchases of more than 70 mass consumption categories (Food, Household Cleaning, Personal Care and Non Alcoholic Beverages) Latin American Coverage Coverage: 14 Countries Sample: 25,000 HouseHolds Category Management Analysis Opportunities for manufactures and retailers permiting to : Identify the customers of a Chain A, evaluating in which other channels of distribution and supermarket chains they also do their purchases Know the buyers loyalty level of a Chain A, searching for possible categories or product portfolios mixed business opportunities Quantify the “lost business” of Chain A: Who the real competitor is at the consumer moment of deciding to purchase? How much could be gained in sales, when a concrete marketing strategy is developed to recover the lost expense ? Benefits of the tools presented Phases of Category Management 10 million 100 million 40 million Category Volume of the Chain: Chain’s market share Category Volume in all channels of distribution Category Volume made by the chains’customers 10 million Only a small proportion of the Chain’s consumers, buy the category at the same chain Assessment of the Chain’s Sales Volume 1. Know the business volume, the chains’s market share, and the customers of the especific chain The loyalty is 25% then total potential is 30 million. Loyalty of the Chain’s Sales Volume 2. Measure chain loyalty in determined category and the expense competitor’s loss Which chains and channels of distribution are the “receivers” of Consumers Chain X lost expenses ? 5 10 15 20 20 30 Chain A Chain B Chain C Chain D Chain E Others Assessment of the lost expenses of Chain X (%) 3. Expense analysis 75
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