Category definition group 1

8/7/2019 Category definition group 1

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Submitted by:

Ashim

Ambrish

Deepshikha

Deepmala


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men's c s ls irt

woven knitted

combination

( wovenandknitted)

Category definition


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woven

printed

otton linen wool

solidsYarn-dyed


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cotton

Slim Regular

Apple hem-line

Straighthem-line

With slits

With collars

Flat rolll

Half sleeves Full sleeves

Doublecuffs

Single cuffs Loop

Mandarin Detachable

Withoutcollars

Without

slits

Regular


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Yarn dyed

checks

gingham madras

stripes

horizontal vertical diagonal


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knitted

knitted

singlejersey

singlejersey

interlock

interlockdouble

knit

doubleknit

pointelle

pointelle pique

pique


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single jersey

cotton

round neck

half sleeve

solids sku's

printed

digital

rubber

heat

transfer

yarn dyed

checks

stripes

embroidered

full sleevev-neck

boat neck

y neck

flat rollcollar

polyester


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Basket analysis

Frequent shopper data

House-hold panel data

Point of sale data

Occasion analysis

Fair share and demand gapping

Financial analysis


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Destinationcategories

Large dollarsalesHighhousehold

penetrationHigh purchasefrequencyDifferentiatedfromcompetitors

Preferredcategories

large dollarsalesHighhousehold

penetrationHigh purchasefrequency

Conveniencecategories

Average dollarsalesAveragehousehold

penetrationInfrequentpurchaseswithin aparticularstore.

Occasionalcategory

Seasonal oroccasional

dollar salesAveragehouseholdpenetrationSeasonal oroccasionalpurchasefrequency.


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Destination categories Knitted ; single jersey ;printed shirts

Rubber print

Heat transfer

Digital print


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Woven ; printed

Digital

Screen

Rubber


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Preferred categories

Woven; regular fit; slim fit ; flat roll collared ;

solids


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Woven; regular fit ; yarn dyed; stripes

Horizontal

Vertical

Diagonal


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Knitted ; single jersey ; solids

Knitted ; single jersey; yarn dyed; stripes

Horizontal

Vertical

diagonal


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convenience categories

woven ;slim fit; apple hemline; yarn dyed; checks

gingham

madras


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knitted ; Pointelle ; pique;

boat neck

y neck Flat roll


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woven ;slim fit; collar

mandarin

detachable


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Occasional/ Seasonal:

woven ; slim fit ; embroidered


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Involves the development of marketing strategies

for the category.

Category marketing strategies can be classified intothe demand-chain and supply-chain strategies.

The demand-chain strategies are targeted at traffic,profit, transaction, image, turf,cash and Excitement

The supply-chain ones focus on merchandise flowand transaction cost

One of the tools that retailers can use is the growthshare matrix : Each of the category needs to beplotted on the basis of its sales growth and share inthe total business.


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Woven

arndyedc ecks

Knitted c ecks

Woven slim fit

mandarin,detac

ablecollar

Woven solids

Wovenyarndyedstripes

Knitted single jerseysolids andyarndyed

Wovenembroidereds irt

Knitted single jersey;printed s irts

Marketshare

Marketgrowth

low high

low

high

sleepers winners

Questionables Morning star


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Once the strategies for the category have been

selected, the next step is to determine the

assortment

pricing,

promotion,

shelving and

supply-chain tacticsrequired to ensure that the strategies Work.


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Assortment tactics

Style Roundneck

Flat roll collar V- neck Boat neck

construction Woven

/knitted

Woven /knitted Woven /knitted Woven /knitted

Prints Digital

/rubber/heat

transfer

Digital /rubber/heat

transfer

Digital

/rubber/heattransfer

Digital

/rubber/heattransfer

iber

composition

otton/li

nen

otton/linen otton/linen otton/linen

colors Green

/red/white

Green/red/white Green/red/whit

e

Green/red/whit

e

sleeve Half/full Half/full Half/full Half/full

size S,M,L,XL S,M,L,XL S,M,L,XL S,M,L,XL

SKUs 288 units 288 units 288 units 288 units


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Create as many as sub-categories as possible to

increase opportunity

Add club packs as necessary

Create high quality private label

Maximum Variety vs. Market


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Pricing tactics

Top 10 SKUs below lowest competitor everyday

Shelf presentation

Prominent aisle location

Located at the back of thestore

Vertical color blocking

Destination category


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Promotion

Match competitors if they are aggressively

promoting

Avoid out of stock

Feature and display 52 weeks a year

Direct mail advertising

SMSes


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Assortment tactics

style solids stripes

design plain Horizontal/v

ertical/diagonal

construction Woven/

knitted

Woven/

knitted

colors White /

purple/

green /red

green/

white/

purple/red

sleeve Half/full Half/full

size S, M , L, XL S,M,L, XL

SKUS 64 Units 128 units


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Broad variety

Decrease the number of national brands and

eliminate sizes that have relatively low volume.

Create high and low quality private labels

Equal Variety versus Market


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Pricing tactics

Top 20 SKUs equal to lowest competitors

everyday

Shelf presentation

Large section Side wall of the store

45 customer sightline

PreferredcategoryPreferred category


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Promotion Tactic

Match competition if they are aggressively

promotingFeature & Display 26 weeks a year

Newspapers

Direct mail


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Assortment tactics

STYLE CHECKS MANDARIN

BOAT Y-NECK FLATROLL

Construc

tion

woven woven knitted knitted knitted

Colors Green/white/red

/purple

Green/white/red

/purple

Green/white/red

/purple

Green/white/red

/purple

Green/white/red

/purple

Design Gingham

/madras

Plain/stri

pe

Plain/stri

pes

Plain/stri

pes

Plain/stri

pes

Sleeves Half/full Half/full Half/full Half/full Half/full

Size S,M,L,

XL

S,M,L,

XL

S,M,L,

XL

S,M,L,

XL

S,M,L,

XL

SKUS 64 Units 64 units 64 units 64 units 64 units


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Assortment tactics

Decrease assortment by avoiding redundancy Prune low profit/ low volume items

Create lower quality private label for high volume itemsif economic return can be shown.

Pricing tactic

Never use items for EDLP

Raise prices to increase marginsConveniencecategory


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Shelf presentation Decrease space allocated to the category

Place high margin items in prominent positions

Do not display category

Do not feature category in ads

Promotion tactic

Promote only budget buys where margin is high on promotion

Limit promotional pass through

Signs both internal and external to the store

Informative in-house displays of merchandise

Conveniencecategory


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Assortment tactics

Time varietystyle embroidered basic

constructi

on

woven W

oven/knitted

Fibre

composition

Cotton/linen/

wool

wool

colors Green/red/wh

ite/purple

Green/red

/white/pur

ple

size S,M,L,XL S,M,L,XL

Sleeves Half/full Half/full

SKUs 96 units 64 units


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Pricing tactics No

n-inflammatory

Raise price points where possible

Below average operating Expense during non peakperiod.

Shelf presentationMinimum space requiredAvoid using major displaysUse shelf talkers to push more profitable items

Promotion TacticDecrease promotional frequencyUse of flyers

In store promotion


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Category

Subcategory

Segment

Brand

SKU

Distributor

Contribution

And productivity

Market

Market share

And

benchmarks

Consumer

Buyer profile and

Purchasebehavior

Supplier

Share andefficiency

Category assessment from four perspectives


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Economic Performance

It includes the profit generation by the categories

based on sales, inventory, space, and people. It also encompasses the assessment of the

performance of suppliers and the processes

employed by the retailers for managing the

categories.Perceptual performance

It includes the assessment of the perception of

customers in terms of their roles in creating a store

image and patronage.


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Gross Margin Return on Inventory (GMROI)

= Gross margins

Average Inventory @ Cost

used to evaluate departments, merchandise

classification, vendor lines, and items.

compares and evaluates departments with

different margin/ turnover profiles.

Items with higher GMROI are allocated more

space.


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Sales-to-stock ratio:

= net sales

average inventory at retail

The Inventory turnover ratio:

= COGS

Average Inventory @ Cost

Gross Margin return on Floor Space:

= gross margin

space providedGross margin return on Persons employed:

= gross margin/ persons employed


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Assumptions Size of store is 1000 sq ft

No. of employees working in the store is 20

No. of SKUs is 4512

Total sales= 3000 Total sales : Rs 30,00000

Destination category constitutes(7%) : 316

Preferred category (60%): 2707

Convenience category(20%) :902

Seasonal/occasional category(13%): 587


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Size of store is 1000 sq ft

Non selling area ( 8%) : 80 sq ft

Selling area : 920 sq ft

destination categ

ory (7%) :70 sq ft

Preferred category ( 60%) : 600 sq ft

Convenience category ( 20%) : 200 sq ft

Seasonal / occasional category ( 5%) :50 sq ft


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Destination :knitted =Rs 799 Rs 1499

woven= Rs 1499- Rs 2499

Preferred : knitted= Rs 699 Rs 1199

woven = Rs 1099- Rs 1199

Convenience : knitted = Rs 599 Rs 999

woven = Rs 799 Rs 1099

Seasonal/

occasi

onal: Rs 799 Rs 1999


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Sr. No. Particulars Amount Per Unit (Rs.)1 Retail Price s 799

2 Cost of goods 559

Gross margin (30%) 240Discounts and allowances3 Cash discount 10

4 Merchandise allowances 10

5 Others 5

Total 25Adjusted gross margin 215Direct distribution costs7 Warehouse space 0.58 Warehouse handling 1.0

9 Warehouse inventory costs 2.0

10 Transportation to store 1.011 Store space costs 3.2

12 Store inventory costs 4.0

13 Store handling costs 6.0

Total Direct product cost 17.714 DPP 197.3

Documents

Category definition group 1