WHAT RETAILER SEEKS IN CATEGORY CAPTAINS

HOW TO BE THE PERFECT CATEGORY CAPTAIN

Assortment and Space OptimizationThe Nielsen Company

Co

pyr

igh

t ©

2012

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

2

WHAT RETAILERS SEEK IN CATEGORY CAPTAINS

OBJECTIVITY

8

GOOD SIZE AND PERFORMANCE IN THE MARKET

1DEDICATED

RESOURCE(S)

2LONG TERM

COMMITMENT

3

INNOVATIVECONCEPTS

7RETAILER UNDER-

STANDING

6

SHOPPER FOCUS

5SKILLS AND EXPERIENCE

4

Co

pyr

igh

t ©

2013

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

3

1. GOOD SIZE AND PERFORMANCE IN THE MARKETAs supported by available local market data

A LEADING SUPPLIER

NOT NECESSARILY THE NUMBER ONE

NOT NECESSARILY THE ONLY CAPTAIN

SIMILAR STRATEGIC FOCUS WITH THE

RETAILER

DRIVING CATEGORY GROWTH

NOT NECESSARILY THE FASTEST

MOVING

GROWING MULTIPLE

SEGMENTS OF THE CATEGORY

PREFERABLY ORGANIC GROWTH

Co

pyr

igh

t ©

2013

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

4

2. DEDICATED RESOURCE(S)Start with one dedicated CatMan resource. NOT a Key Account Manager.

Sales Manager (KAM)

Salesperson

Account level sales and shopper data

Category expertise

Category reviews

Full-line category programs

Recommendations on retailer’s category strategies

Retailer specific marketing

Partnering/alliances

Category Manager

Business Manager

Market level sales and consumer data

Expertise on own brands

Brand/company review

Own brand/SKU promotions

Recommended programs for own brands

Trade segment marketing

Adversarial relationships

+

Co

pyr

igh

t ©

2013

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

5

High

Low

Fact-Based Selling

Space & Assortment

Management

Full Category Management

Joint extendedCategory Projects

Retailer Commitment to Category Management

Manufacturercapability

to bea category“Expert”

Low High

Retailer data sharing

3. LONG TERM COMMITMENTDeveloping the working relationship needs a change in mindset

Inve

stm

ent

in S

ho

pp

er

Re

sear

ch

Co

pyr

igh

t ©

2013

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

6

4. SKILLS AND EXPERIENCEDeveloping a collaborative relationship for a holistic business understanding

Information & skills providedCompany & Brand strategiesMarket dataConsumer & Shopper knowledgeIn-market category knowledgeMarketing & Selling SkillsAssortment & Merchandising skills

ResponsibilityAnalysisRecommendationsImplementations resources

Information & skills providedCompany & Category strategiesSales dataShopper knowledgeIn-store category knowledge Selling & Operational skillsIn-store execution skills

ResponsibilityReview & decisionImplementationCompliance

Category Captain Retailer

+

Co

pyr

igh

t ©

2013

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

7

Shopper segmentationStore clusteringShopper decision treeShopper category definitionShopper behaviorShopper insightsShopper KPIsVirtual shopping/Eye trackingStore observationStore test

5. FOCUS ON THE SHOPPERPossible shopper input in every step of the process

Co

pyr

igh

t ©

2013

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

8

6. RETAILER UNDERSTANDINGConsidering retailers strategic decisions and imperatives

CATEGORY

ROLES

CATEGORY TACTICS

Assortment Merchandising Price Promotion

Destination Complete variety

at segment and

SKU level

Prime store

location with high

traffic, high

exposure

Leadership (best

value for the

category, loss

leader)

High level of

activity, high

frequency, long

duration, many

vehicles

Preferred Broad variety,

down to SKU level

Average store

location, high

space allocation

Equal to

competition,

across all SKUs

Average level of

activities, various

vehicles

Occasional

(seasonal)

Timely variety Good store

location, average

space allocation

Equal to

competition during

season

Seasonal, timely

activities using

several vehicles

Convenience Selected SKUs

(biggest sellers)

Available store

location

Within reach of

competition,

around 15%

higher

Low level,

selected vehicles

Co

pyr

igh

t ©

2013

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

9

SnacksSoft Drinks

7. INNOVATIVE CONCEPTSA vision for the category, a willingness to challenge the common and to test new ideas

Coca-Cola, UK PepsiCo, Latin America

Co

pyr

igh

t ©

2013

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

10

RetailerManufacturer /

Distributor

Shopper

8. OBJECTIVITYRespecting dichotomies in space planning and act in an objective way

Logistics Finance

Visual

HOW CAN NIELSEN HELPS YOU?

Co

pyr

igh

t ©

2013

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

12

HELP TO APPROACH A RETAILER FOR CAPTAINCY

Assign resources, skills and expertise needed to be a captain

Define and communicate internally & externally your way of CatMan, possibly in a charter

Do some homework: already do some analysis and identify category opportunities for the retailer

Start small: if relevant, ask the retailer for just one store

Set up

Define

Communicate

Prepare

Concede

Reassure

Talk category & segments before brands. Do not necessarily use the words “Category Management”, not to scare away retailers

If needed, design and sign a data confidentiality agreement with the retailer

Co

pyr

igh

t ©

2013

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

13

USING NIELSEN SUPPORTING SERVICES

Category Management Advice

Category Management Outsourcing

Category Management Workshop suite

Develop skills Develop approach Develop planograms

Co

pyr

igh

t ©

2013

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

14All workshops are available as public or in-house format

Impactful Space Management

Assist or influence shoppers via category & product space and placement whilst ensuring efficient store operations

2 d

ays

2 d

ays

2 d

ays

Practical Category Management

Jointly develop in-store category tactics with a retailer/ manufacturer following ECR’s 8-step CatMan process

Shopper-Centric Category Management

Optimize in-store tactics using tools & techniques deeply rooted in shopper profile and behavior

Audience (=retailers/manufacturers)

Space planning, Merchandising , Category Management Beginner and Intermediate level

Category Management, MerchandisingBuying, Trade Marketing, Marketing,Sales, Key Account ManagementBeginner and Intermediate level

Category Management, MerchandisingBuying, Trade Marketing, Marketing,Sales, Key Account ManagementIntermediate and Experienced level

Needs a good knowledge and practice of ECR’s 8 steps process or similar, experience at least in range and merchandising projects foran entire category, or having attended Nielsen’s Practical Category Management workshop

Storewars (in cooperation with the Nielsen Company)

Manage a business and negotiate with trade partners to achieve a leading and profitable market position

Category Management, Buying, TradeMarketing, Marketing, Sales, KeyAccount Management, Finance, HRTop and middle management

2017 CATEGORY MANAGEMENT WORKSHOPS OVERVIEW

Efficient Assortment Management

Select the appropriate product assortment for your category and contribute to operational effectiveness and efficiency for your organization

Category Management, MerchandisingBuying, Trade Marketing, Marketing,Sales, Key Account ManagementIntermediate and Experienced level

2 d

ays

ASOOUTSOURCED PLANOGRAMS CREATION

Co

pyr

igh

t ©

2013

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

16

NIELSEN CAN HELP YOU BY OUTSOURCING:

Define product range

Set merchandising rules

Create mudmap

Create planogram

Test shoppability

Review results

Monitor compliance

Set objectives

Preparation

Planograming

Execution & Review

Develop Shopper Decision Tree

HEAR YOU SOON