1. Date: 7/30/2015
Presented by: Eric Togneri
The Category Management Process
Driving collaboration in General
Merchandise categories

2. Thank you to our Sponsor!
for sponsoring today’s workshop

3. A quick introduction to CPG CatNet…
Presenter: Eric Togneri
Principal, CPG CatNet

4. HBW and Food and Beverage companies score the highest
ratings in Category Management…
45.5%
36.2%
24.2%
12.5%
10.9%
9.9% 9.9%
7.6% 7.6% 7.4%
P&G KR GM PC Nes Camp U AB FL K
Source: Cannondale Associates, PoweRanking Survey 2005
Which Manufacturers Best Practice Category Management?
GM is noticeably absent
from this list

5. Category management is important to retailers…
Grocery
C-Store
Mass
Drug
Club
Source: Cannondale CMAR Study 2004
82%
86%
83%
82%
65%
67%
% retailers rating category management “very or extremely important”
Channel Ratings Overall Rating

6. Category Management process has evolved to an
improved collaborative process…
Category Definition
Category Role
Category Assessment
Category Strategy
Category Scorecard
Category Tactics
Plan Implementation
Category Review
Category Management Marketing at Retail
Past Future
Fact FindingInvestigation
Measurement
Execution
Case
Building
Path to Success

7. This transition is leading to marked changes in
supplier / retailer collaboration…
Category Definition
Category Role
Category Assessment
Category Strategy
Category Scorecard
Category Tactics
Plan Implementation
Category Review
Category Management
Marketing at Retail
Canned
Category
Generic
Custom
Solution
Differentiate
Fact FindingInvestigation
Measurement
Execution
Case
Building
Path to Success

8. Category Management process combines collaboration, behind the
scenes work, and retail execution to achieve results…
Marketing at Retail Approach
Fact FindingInvestigation
Measurement
Execution
Case
Building
Finding out what
is important
Look to the data
for answers
Making it
Happen
Continuous
Improvement
Plan to
Win

9. Investigation leads to common understanding of the retailer objectives…
 It is very important for retailers to know that suppliers fully
understand their goals and objectives
 Conducting a dialogue where investigating and aligning with retailer
objectives is evidence of a suppliers commitment
 This is the type of approach that builds credibility and collaboration
for the supplier and the retailer
 A more solid direction and better plans are then built on a solid
foundation

10. Investigation can be both formal and informal…
Formal
 Conducting a meeting where the sole purpose is understanding the
retailer
 Integrating into the agenda on formal meetings and conversations
Informal
 Investigation is a mindset, take the opportunity whenever it presents
itself

11. How the formal investigation meeting works…
Who attends…
 The appropriate decision makers from merchandising, marketing
and logistics. All of the key players should be involved
What it is…
 A minimum of one hour meeting, ideally longer with clearly defined
purpose
Where does it take place…
 In a place free of interruption
How often…
 At least one time per year or more often when necessary
How to conduct…
 Probe and align….do not raise!

12. Conduct a post-meeting analysis of retailer
objectives and create an action plan…
Retailer
Objectives
Supplier
Capabilities Prioritization
To build category loyalty Brand loyalty initiative and
consumer understanding
High
To maintain category
market share
Channel growth initiative Low
To improve internal IT
systems
Out of scope N/A

13. Fact finding uncovers what information is available
to address retailer objectives…
 Tap into multiple data sources to
uncover insights
 Point of Sale / Syndicated Research
 Topic relevant research
 Consumer research
 Demographic and psychographic research
 Bucket all of the relevant insights
against the appropriate retailer
objectives
 Take a step back and look at what the
totality of evidence is indicating
Fact FindingInvestigation
Measurement
Execution
Case Building

14. Building a good case creates a compelling call to action…
 The facts drive the direction of the
story
 A compelling story is a compilation
of facts that lead to a conclusion
 A credible conclusion is a
summary of facts
 A call to action creates a course of
direction that should be taken as a
result of the insights
Fact FindingInvestigation
Measurement
Execution
Case Building

15. The facts of the case are compiled from multiple sources…
Retailer Input
Uncovered Through
Investigation
3rd Party Data
Either Purchased
or Public
Sales and
Marketing
Initiatives
Internal Data
Available
for Use
Compelling Case

16. The case for action follows these steps…
Specifics
Action Plan
Benefits
Issue/
Opportunity
Retailer
Solution1
2
3
4
5

17. The presentation of a solid case is simple to follow, well
supported and leads to a conclusion…
Description
Conclusion
Headline
Interminable vs. Concise
Headline
$5,000 $10,000 $3,500
$5,000 $10,000 $7,000
$5,000 $10,000 $10,500
$5,000 $10,000 $14,000
$5,000 $10,000 $17,500
$5,000 $10,000 $21,000
$5,000 $10,000 $24,500
$5,000 $10,000 $28,000
$5,000 $10,000 $31,500

18. The best laid plans must be executed…
 The retailer has to fully support the
case and conclusion
 A retail plan needs to be put in
place that outlines the steps that
need to be taken
 Responsibilities assigned with
strict accountability
 Accomplish the plan…so we can
measure the results
Fact FindingInvestigation
Measurement
Execution
Case Building

19. Measure is the most important step toward continuous improvement…
 There is no way to know if you are
achieving if you are not keeping
score
 Make sure that the right thing is
being measured
 “Measure twice cut once”
 Don’t kill the messenger…focus on
what the message is conveying
and why
Fact FindingInvestigation
Measurement
Execution
Case Building

20. There are numerous positive outcomes that
will result from measurement…
 Category Management objectives are both clearly understood
and how they will be measured
 Consistent measurement will enhance credibility over time as a
track record is established and built upon
 Measurement brings the process full circle and provides a
bridge to starting the process over again

21. A true partnership is the confluence of objectives leading
ultimately to true collaboration…
Supplier
Opportunities
Retailer
Opportunities
Retailer
Objectives
Supplier
Objectives
Cooperative
Measurement
Collaboration

22. Date: 7/30/2015
Presented by: Eric Togneri
The Category Management Process
Questions & Answers