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Category Management
“ A Supplier - Retailer Process of Managing Categories as Strategic Business Units, Producing Enhanced Business Results by Focusing on Delivering Consumer Value “
SUPERMART
Category Management is all about growing TOTAL category value.
CATEGORY MANAGEMENT
HUL CSD’s URC SHOPPER
WIN WIN WIN
Category growth
Trade relations
Credibility
Increase category share
Higher standards of service
Targeted individual needs
Reduced out of stocks
More convenient shopping
Category growth
Full profit realisation
Customer loyalty
Our Endeavour
CATMAN PROCESS
Determine products that make up the category and its segmentation from the consumer’s perspectiveAssign role based on cross-category analysis and comparison considering consumer, retailer, and market information
Conduct analysis on subcategories, segments, brands, skus based on consumer, retailer, supplier and market information
Establish the category’s performance measures and their targets
Develop marketing, product supply and, if necessary,in-store strategies for the category to deliver category role and performance targetsDetermine optimal category assortment, product supply, pricing, shelf presentation, promotion and introduction tactics that ensure the category strategies are implemented
Develop and implement the category business plan through specific schedule and list of responsibilities
Select Reputable Supplier to entrust & coordinate the whole Catman process
CATEGORY DEFINITIONCATEGORY DEFINITION
CATEGORY ROLECATEGORY ROLE
CATEGORY ASSESSMENTCATEGORY ASSESSMENT
CATEGORY SCORECARDCATEGORY SCORECARD
CATEGORY STRATEGYCATEGORY STRATEGY
CATEGORY TACTICSCATEGORY TACTICS
PLAN IMPLEMENTATIONPLAN IMPLEMENTATION
CATEGORY REVIEWCATEGORY REVIEW
SELECT CATEGORY CHAMPION
SELECT CATEGORY CHAMPION
Category Assortment
• Determining the most optimum sku mix of a category• How much should be cut?
– This is based on the agreed category role (Destination, Preferred, Convenience, Seasonal Destination, and Seasonal Convenience)
– Destination Category should have the widest and deepest assortment (efficiency is not a concern); the rest of the roles dictate that the assortment “meets the needs/limitations (space)” i.e. efficiency is the name of the game
• Commonly used KPI’s in determining the optimum assortment– Sales Value, Sales Volume, and GMROII
• A planogram is a visual diagram which shows how the category should be displayed on shelf– Based on how the consumer/shopper “sees” and/or “buys” the category i.e.
based on the category construct or purchase decision tree
• Basis for space allocation– Generic Planogram -> AC Nielsen Retail Audit Data– Customer Specific Planogram - > Customer POS Data, Performance Index agreed
jointly with the retailer (value share, volume share, GMROII, etc)
• Basis for brand location on shelf is the general planogram guideline
Category Shelf Planogram
Principles in Allocating Space…
• Highest contributing sub-category, segment, sub-segment, benefit platform, or brand is given priority in allocating space in the primary shelf fixture
• Based on Traffic Flow• Vertical display orientation for sub-category,
segment, sub-segment, and benefit platform is recommended; only at brand level is a horizontal display orientation allowed
• Price Point Discount -> Popular -> Premium from left to right
• Pack Size Placement » Small to Big pack sizes from top to bottom
(safety issue)» Small to Big pack sizes from left to right (90% of
shoppers are right handed; they get a product off the shelf with their right hand)
Basic Shelf Planogram Principles
• Sub-Category, Segment, Level, and Brand Placement– The highest contributing sub-category, segment, level, and brand is
placed “first in traffic”– Middle aisle preferred is the category shelf aisle is less than 15 ft
BAR LIQUIDPOWDER
Henko / Ariel / Surf Excel Matic
Ariel 2 Shelf
Surf Excel QW 3 ShelfSurf excel Matic 4 Shelf Surf Excel Blue 3 Shelf
HenkoHenko
Tide 3 ShelfRin 2 ShelfHenkoMr White / Wheel
Rin Surf Excel 3 ShelfHenko / TideRin Advance / Wheel 2 Shelf
Surf Excel / Godrej / EzzeVanish 2 ShelfRobin / UjalaRobin / ComfortRobin / AlaRevive/ Bambi / Easy On
Basic Shelf Planogram Principles
• Shelf Layer priority• 7 ft Shelf -> 3rd and 4th shelf layer• 6 ft Shelf -> 2nd and 3rd shelf layer• 5 ft shelf -> 1st and 2nd shelf layerIts not About getting the top Shelf visibility in all the Bays across
6 bays, Instead get the right visibility in the first 4 Bays only
Basic Shelf Planogram Principles
• Minimizes out of stock and overstocked skus due to correct space allocation
• Provides “ease of shopping” for the consumer/shopper since the category is displayed based on how she “see’s”/”buys” the category
• Used by retailers in “highlighting” certain sku’s/products i.e high GMROII sku’s, NPI’s, etc
• Ensures consistent look of the category across geographies and store formats
Benefits of “Planograming”
11 Apr 202313
Frame Work Category:_____________________
Category Definition . . . Category Construct . . .
11 Apr 202314
Category Definition . . . Skin Cleansing All skin cleansing products, foaming or otherwise, which are used to provide skin cleansing - with or without water - for body, hand and face - including bars, liquids (shower and hand (in an out of home), gels, applicators, face washes, bath additives, wipes, sanitizers and soap strips and excluding face mask, specialist face cleansers (make up removers) and traditional home remedies, toners and astringentsCategory Construct . . .
Personal Wash Planogram - Mumbai
Depth = 36cm (Max)
18cm (Min)
Dove
PearsLifebuoy & Liril
Lifebuoy
Lux
Lifebuoy & Lux
Lux
Hamam & Breeze
Rexona
No of Shelves Allocated for HUL Brands in the
total Category.
The Brands Block on Dove, Pears, Lux, Rexona, Hamam, Lifebuoy & the complete HUL
Block.
Personal Wash Planogram - Mumbai
DovePearsLiril
Lux
Lux & Breeze
Lux
HamamRexona Lifebuoy
No of Shelves Allocated for HUL Brands in the
total Category.
The Brands Block on Dove, Pears, Lux, Rexona, Hamam, Lifebuoy & the complete HUL
Block.
Personal Wash Planogram - Chennai
PERSONAL WASH 64%Dove
Liril and Lifebuoy Lifebuoy
PearsLux
Rexona
Hamam
No of Shelves Allocated for HUL Brands in the
total Category.
The Brands Block on Dove, Pears, Lux, Rexona, Hamam, Lifebouy & the complete HUL
Block.
Dove
Pears Amber
Pears Amber and Oil Control
LuxHamam
Liril and HamamRexona
Lifebuoy
Lifebuoy
Personal Wash Planogram - Chennai
No of Shelves Allocated for HUL Brands in the
total Category.
The Brands Block on Dove, Pears, Lux, Rexona, Hamam, Lifebuoy & the complete HUL
Block.
Personal Wash Planogram Delhi
Depth = 36cm (Max)
18cm (Min)
DovePears
Pears & LirilLifebuoy
LuxLux
HamamRexona
No of Shelves Allocated for HUL Brands in the
total Category.
The Brands Block on Dove, Pears, Lux, Rexona, Hamam, Lifebouy & the complete HUL
Block.
DovePears
Pears & LirilLux
Lux
HamamRexona Lifebuoy
The Brands Block on Dove, Pears, Lux, Rexona, Hamam, Lifebuoy & the complete HUL
Block.
No of Shelves Allocated for HUL Brands in the
total Category.
Personal Wash Planogram Delhi
Personal Wash Planogram - Calcutta
Depth = 36cm (Max)
18cm (Min)
DovePearsLiril
Lux
Lux & Breeze
LuxHamamRexona
Lifebuoy & Rexona
The Brands Block on Dove, Pears, Lux, Rexona, Hamam, Lifebouy & the complete HUL
Block.
No of Shelves Allocated for HUL Brands in the
total Category.
Depth = 36cm (Max)
18cm (Min)
DovePears
LuxLux & Breeze
LuxLiril
HamamRexona
Lifebuoy
Personal Wash Planogram - Calcutta
No of Shelves Allocated for HUL Brands in the
total Category.
The Brands Block on Dove, Pears, Lux, Rexona, Hamam, Lifebuoy & the complete HUL
Block.
11 Apr 202323
Category Definition . . . Fabric CareThe Indian Laundry category consists of all products that clean and care for clothes. It includes all products that are used before wash, during wash and after wash Excludes – all out of home laundry services – dry cleaning, ironing, dhobi services, launderettes.Category Construct . . .
Fabric Wash Planogram
Surf Excel Quick Wash
Surf Excel Matic Surf Excel Blue
Rin Advance
Wheel Gold
Surf Excel Bars
RinAdvance
Bars
Wheel &501 Bars
No of Shelves Allocated for HUL Brands in the
total Category.
The Brands Block on Surf XL Auto, Surf QW, Surf XL Blue, Rin, Wheel & the complete HUL Block. –
Separate for Powders & Bars
Fabric Wash Planogram
FABRIC WASH 61%Machine Wash Concentrate Colour control Whiteness & Mass UsageSurf Excel Matic Surf Excel Quick Wash Surf Excel Blue Rin and Wheel Gold
Surf Excel Bars
RinAdvance
Bars
Wheel &501 Bars
No of Shelves Allocated for HUL Brands in the
total Category.
The Brands Block on Surf XL Auto, Surf QW, Surf XL Blue, Rin, Wheel & the complete HUL Block. –
Separate for Powders & Bars
Category Definition . . . The hair care Category consists of all types of hair products sold to consumer in mass retail and salons including daily hair care, oils, colorants & therapeutic hair applications.
• Store Space is an asset.
• Store space is limited.
• Challenge: – “How can we best use store space to maximize
business potential?”
Store Realities
Increase Basket Spend
(Transaction Size)
Frequency Of visit
(Purchase)
An operation management tool which aims to maximize profit per square measurement via
efficient lay-outing and allocation of store space
Driving Traffic(Penetration)
Objectives of Practical Store Layout
Drive Sales& Value
Drive Sales& Value
CIRCULATION PATH
What is it all about?> Proper placement of high traffic categories to the entire storeHow can it benefit our business?Increase Purchase Potential> Encourages shoppers to visit the whole of the store by guiding them with the placement of key categories> Increased shopper exposure for low traffic categories when partnered with high traffic categoriesGreater shopping convenience> Prevents lane clogging by distributing key categories around the store
1
Practical store lay-out process
Practical store lay-out process
EFFECTIVE ADJACENCIES
What is it all about?> Grouping related categories together based on using different analysis tools. How can it benefit our business?Increase Purchase Potential> Influence complementary category purchasesGreater shopping convenience> Makes it easier for shoppers to buy what they need since related categories are grouped together
2
SPACE ALLOCATION
What is it all about?> assign proper space to categories based on their store performance and contribution How can it benefit our business?Greater efficiency> Ensures enough stocking for high demand categories to help us avoid out-of stocks during peak hoursGreater shopping convenience> Increases category visibility to make it easier for shoppers to find what they want> Increases shopping space for the category to avoid overcrowding in the area
3
Practical store lay-out process
Full Store Layout - Macro view
EFFECTIVE ADJACENCIES
SPACE ALLOCATION
CIRCULATION PATH1
3
2
Fresh Section
Cooking Essentials & Party Preparation
Snacks
Quick Meals
Healthy Selection / Beverages
Breakfast
Baby Care
Personal Care
Home Care
Check-out-Counters
Beverage
Fresh Section
Cooking Essentials & Party Preparation
Snacks
Quick Meals
Healthy Selection / Beverages
Breakfast
Baby Care
Personal Care
Home Care
Legend :
High Traffic
Low Traffic
Check-out-Counters
CIRCULATION PATH1
Beverage
Full Store Layout - Macro view
• Principle- arranging the products based on shopper decision flow will also make it
more convenient for shoppers to shop in-store
House WareHousekeeping
Health & Beauty
FemininePaper
DiapersInfant Milk
Regular MilkDairy
Beverages
Canned Fruits
Canned Veggies
Soups
Category Adjacencies or Clusters
Canned Meat
Cooking Essentials
Dressings & Spreads
Pasta & Noodles
Breads
DetergentsSnacks
ConfectioneryHomeCare
PersonalCare
BabyCare
Breakfast
Cooking Essentials
QuickMeals
Breakfast
Beverages, Snack& Sweets
EFFECTIVE ADJACENCIES2
Full Store Layout - Macro view
Fresh Section
Cooking Essentials & Party Preparation
Snacks
Quick Meals
Healthy Selection / Beverages
Breakfast
Baby Care
Personal Care
Home Care
Check-out-Counters
SPACE ALLOCATION3
Division % Value
Food 71%
Non-Food 29%
Total 100%Source: Nielsen Retail Audit
71% FOOD
29%NON-FOOD
Beverage
Full Store Layout - Macro view
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