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CATEGORY MANAGEMENT
Session Objectives:
Define Category Management (CM)
Describe Category Management as a Business Process
Discuss Critical Issues Related to Successfully Developing a Category Management System
Category Management Process
Category Management Issues
Define Category Management
Definition
Bringing Better Value to the Consumer is thePrimary Focus of Category Management.
“A Retailer-Supplier process of managing categories as Strategic Business Units, producing improved sales and profit results by focusing on satisfying consumer needs and delivering consumer value.”
Source: ECR Best Practices Report
Category Management has expanding into durable goods and services.
Is Category Management just for the grocer?
Durable Goods
Auto Industry - GM Pontiac Ford
Service Industry
Phone Service
Financial Services/Banks
Definition
The ECR System
Timely, accurate, paperless information flow
Supplier
Distributor
Retail
Store
Consumer
Household
Smooth, continual product flow matched to consumption
Definition
Efficient Promotion
Efficient Store Assortment
Definition
Category Management is at the at the core of ECR. CM provides a process framework for collaboration.
Efficient New Product Development
Efficient Replenishment
CATEGORY
MANAGEMENT
Category Management as a Business Process is comprised of interrelated components both within and outside of the organization.
What is Category Management?
Definition
Information
Technology
Strategy
Business Process
Scorecard
Collaborative
Relationships
Organization
Capabilities
Core
Enablers
Enablers
CATEGORY MANAGEMENT: HOW IS IT DIFFERENT?
Category/Brand/SKU Management under one Decision Maker
Consumer-Focused Strategies
Data-based Decision Making
Proactive Business Planning
Collaborative Work Process
Manage Category As Business Unit
Focused on Category ROI - NOT Sales or Gross Margin
Definition
SKILLS NEEDED TO BUILD BUSINESS THROUGH CATEGORY MANAGEMENT
Data analysis and tec
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