Tatyana karaseva (bacardi). ekaterina kudryashova (real)

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CATEGORY MANAGEMENT PARTNERSHIP

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• 12 cities • 15 hypermarkets• 4’569 – employees• 122’995 м² - sales area

International practice Global Corporate Culture

Customer-oriented approach Complete Satisfaction of Customer Expectations

Success oriented Business Thought

Ambitious Drive for Steady Increase

Innovative Retailing Force

today…

Source: www.real.ru ; www.planetretail.net

Real HypermarketsNo. of Stores, 2006-2010

15

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• Unique family company on the alcohol market (6-th generation at the head of the Company)

• Heritage of 150th history of the Company

• Biggest Premium Spirits importer in Russia

• Unique premium spirits portfolio

Mission

• Leadership in brand promotion in Russian Premium Spirits industry

• Guide to world-famous alcohol cocktails drinking

- Member of BACARDI-MARTINI Group

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Partnership in Category Management

From Bacardi Rus side From Partner side

Qualitative executionEducation /

ConsultationAnalytical approach

Shopper InsightCustomer-oriented

approach Category Category ManagementManagementStrategic approach

Main principles

Partnership goals:

• Joint Premium Spirits category development

• Category growth

• Assortment optimization

• Creation of shopping best practice

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Category Management Background

Frequent change of purchase

behavior

Growth of competition

Insufficient customer-orientation

Cost increase

Market complexitychallenges

advanced approach

Growth of multi-format retail chains

CATEGORYMANAGEMENT

• Optimized & well-balanced assortment• Clear logical layout

• Merchandising simplification

• Simplification of shopping process

• Customer’s loyalty increase

• Growth of Premium Spirits category

• Category layout in line with Shopper Insight

• Customers education of the right consumption

• Creation of shopping best practice

at the marketfor

Customer-centricCategory management

for

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Premium Spirits Development Strategy

Premium Spirits Structure*

Source: * Customs, ** Real Sales Out Report, Moscow

Category Strategy

Premium Spirits are key categories in Retailer’s range:

Sales Value building

Traffic building

Transaction building

Image Enhancing

Category tactics

Optimal assortment matrix building on high loyalty & market leading items

Price gap analysis

Drive multi-purchase via attractive layout and consultancy

Category presentation improvement based on shopper behavior pattern

Innovative approach in decoration

Customers education

+3 0 %+3 1%

+1 1%

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Methodology, Tactics & Actions

AnalysisAnalysis LayoutLayout

ImplementationImplementation NavigationNavigation

Category determination

Category analysis

Shopper research

Outlet types grouping Range optimization

Category segmentation

Regional differences adaptation

Planogram

Decoration

Implementation Trainings for Floor Managers in outlets

KPIs

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Shopper Insight

Methods

Qualitative research accompanied shopping

shopping in glasses with embedded camera

focus groups

on-line research

Quantitative research interview in POS and in checkout aisle

shoppers’ behavior observation

Findings

Exceeding brand loyalty

Gift packs are good brand identificators

Customers read back labels during shopping

Shoppers are not experts in the category.

Difficult to make choice in mixed categories layout

Customers need clear logical layout

Department does not look premium enough

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Assortment optimization

Category Management in Rums, Tequila, Sparkling wines, Vermouth

• Due to recessionary market trends, shoppers switch to cheaper brands – it is necessary to implement clear

price segmentation

• Clear segmentation by shopper decision tree

• Seasonal shelf share correction for category segments with seasonal sales movement

• Delisting of stagnated SKUs.

Market trend analysis

Competitive trends analysis

Assortment analysis

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Layout optimization

Dry Sparkling wines Sweet Sparkling wines

Imported Sparkling wines

CISItaly Chile

Argentina

French Champagne

ItalyGermany

Hungary

French Sparkling wine

Spain

SPW variety

Dry

France

Germany

Brut

Champagne

Sweet

Spain

Austria

ItalyProsecco

Brut

Brut

Cava

Chile

ItalyOthers

Asti

Objectives

Build assortment based on target customers’

preferences

Deliver shelf space in line with Category sales, Market

trends and Shopper decision tree.

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Rum, Gin, Tequila categories developmentДжины

ТекилаРомы

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Rum category decoration

Category navigation objectives• Category visibility improvement• Product availability• Attractiveness

• Drive multi-purchase • Shopping in the Category simplification• Customers education

Installation of Category cocktail correct serve

This exposition corresponds with seasonal cocktail focus (for summer period – Mojito, winter period – dark rum)

Pocket with receipts of promoted cocktail

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Tequila category decoration

Installation of Category cocktail correct serve

Pocket with receipts of promoted cocktail

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Vermouth category decoration

Installation of correct serve of the cocktail

Pocket with receipts of promoted cocktail

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Sparkling wines category decoration

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Decoration evaluation by shoppers

Installation of correct serve Receipts of cocktail

Base 242

%

Drawing attention

Positive evaluation

Customer education

Motivation to try cocktail

Decorators help to identify the Category

Purchase stimulation

Drinking culture understanding

Source: Results of Shopper Decoration Evaluation, 2010, May

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Planogram implementation

Trend (Non-test outlets) Trend (Test outlets)

Project efficiencyLight spirits

Source: Real Scan data

Decoration implementation

Tes

t out

lets

– 1

0, 1

1, 1

3

Non

test

out

lets

23,

12

Tes

t out

let –

10,

Non

-tes

t out

let -

11,

Average monthly Category sales

exceed in test outlets +7%

vs. non-test outlets -3%

+10%

Average monthly Category sales

exceed in test outlets +11%

vs. non-test outlets -9%

+20%

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Project efficiencyStrong spirits

Source: Real Scan data

Decoration implementation

Tes

t out

lets

– 1

0, 1

1, 1

3

Non

test

out

lets

23,

12

Tes

t out

let –

10,

Non

-tes

t out

let -

11,

Planogram implementation

Trend (Non-test outlets) Trend (Test outlets)

Average monthly Category sales

exceed in test outlets +32%

vs. non-test outlets +18%

+14%

Average monthly Category sales

exceed in test outlets +31%

vs. non-test outlets +16%

+15%

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Project originality

• Tailor made approach to Customers’ preferences of particular retail chain

• Clear and convenience shelf navigation implemented to simplify shopping

• Customers education of the right consumption – Cocktails receipts, Installation of correct

cocktails serve

• Creation of shopping best practice to attract customers to Alcohol Department

• Inspiration of Retailer perception like the benchmark of the best offer of Premium Spirits

• Premium decoration materials to make premium look of the Category

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Thank you!

Bacardi Rus LLCTatiana KarasevaCategory ManagerTKaraseva@bacardi.com

Real Hypermarket

Ekaterina Kudryashova

Head of Space Management Department

Ekaterina.Kudryashova@real.ru