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CATEGORY MANAGEMENTSession Objectives:Define Category ManagementCategory Management ProcessCategory Management IssuesDefine Category Management (CM) Describe Category Management as a Business ProcessDiscuss Critical Issues Related to Successfully Developing a Category Management System Bringing Better Value to the Consumer is thePrimary Focus of Category Management.Definition“A Retailer-Supplier process of managing categories as Strategic Business Units, producing improved sales and profit results by focusing on satisfying consumer needs and delivering consumer value.”Source: ECR Best Practices ReportCategory Management has expanding into durable goods and services.DefinitionIs Category Management just for the grocer? Durable GoodsAuto Industry - GM Pontiac FordService IndustryPhone ServiceFinancial Services/BanksThe ECR SystemDefinitionTimely, accurate, paperless information flowRetailStoreConsumerHouseholdSupplierDistributorSmooth, continual product flow matched to consumptionCategory Management is at the at the core of ECR. CM provides a process framework for collaboration.DefinitionEfficient New Product DevelopmentCATEGORYMANAGEMENTEfficient PromotionEfficient ReplenishmentEfficient Store AssortmentCategory Management as a Business Process is comprised of interrelated components both within and outside of the organization.DefinitionWhat is Category Management?InformationTechnologyOrganizationCapabilitiesCoreStrategyBusiness ProcessEnablersEnablersCollaborativeRelationshipsScorecardCATEGORY MANAGEMENT: HOW IS IT DIFFERENT?DefinitionCategory/Brand/SKU Management under one Decision MakerConsumer-Focused StrategiesData-based Decision MakingProactive Business PlanningCollaborative Work ProcessManage Category As Business UnitFocused on Category ROI - NOT Sales or Gross MarginSKILLS NEEDED TO BUILD BUSINESS THROUGH CATEGORY MANAGEMENTDefinitionData analysis and technical masteryShopper and consumer understandingStrategy developmentFina
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