Table of Contents

NEXT GENERATION CATEGORY MANAGEMENT

Chapter 1

Linking Category Management to

Competitive Strategies

13

Introduction
Retailing Strategy

13
13

Category Management
Evolution and Implications of Category Management
Competitive Strategies
Developing Category Management Capability
Strategy Issues for Category Management Implementation
Conclusion

14
15
19
22
23
24

Chapter 2

Limitations of Current Category

Management Systems

Introduction
Current Category Management Focus
Current Limitations
Organization
People
Information systems
Reliance on manufacturers
Lack of creativity
Very limited understanding of the consumer
No knowledge of category drivers
Lack of knowledge of true costs
Poor execution
Causes of Limitations
What is Needed?
Cost effective
Focused on the consumer
Retailers can set the process
Results are tracked
Leads to continuous improvement
Conclusion

iii

25
25
25
27
27
28
29
29
29
30
30
30
31
31
32
33
33
34
34
34
34

Chapter 3

Integrating Category
Management & Customer
Management: How the Consumer
enters the Category Management
Process

35

Introduction

35

Customer Management
Principles of Customer Management
Customer Management Business Process
Marketing Mix for Customer Management
Integration with Category Management
Marketing Mix
Conclusion

35
37
38
40
42
45
46

Chapter 4

Cornerstones of Category
Management

Introduction
The Category Management Process
Costs
Consumer
Category Drivers
Competition
Improving Category Management Practices Based on the 4 Cs
Information systems
Organization capability
Conclusion

Chapter 5

Information Technology for

Category Management

47
47
47
49
52
54
56
57
58
59
62

63

Introduction
Category Management Business Process
Analytical Requirements
Data Requirements
Category definition
Category role
Category assessment
Category balanced scorecard
Category strategies
Information Systems Requirements

63
63
64
65
65
65
66
67
67
67

Information Infrastructure for Category Management

Computing and Communications Platform

69
69

iv

Data Architecture
Implementation Challenges
Implementation Process
Conclusion

Chapter 6

69
72
73
74

Application Software for

Category Management

75

Introduction

75

Category Planning
Implementing a Category Planning Application
Challenges Encountered
Implementing an Automated System
Identify Category Business Planning Templates and Application Requirements
Category Planning Database Application
Data Sources, Availability and Responsibility for Providing this Data
Understand Input File Formats
Create Input Files
Use Category Planning Database Application
Import data files
Perform system calculations
Export to spreadsheet
Conclusion

75
76
77
78
79
79
82
86
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95
95
95
96
96

Chapter 7

Category Plan Monitoring &

Tactical Applications

Introduction
Category Plan Monitoring
Assortment Planning
Pricing Management
Promotion Management
Space Management
Product Supply Management
Conclusion

Chapter 8

97
97
97
103
105
110
112
120
123

Data Warehouse Based Category

Management Systems
125

Introduction
What is a Data Warehouse?
Building Data Warehouses
The data modeling process
Data Sources for Category Management

125
126
128
128
132

The Data Model for Category Management

Product
Time
Geography
Causal Data
Facts
Logical and Physical Data Models
The Physical Data Model
Data Engineering
Extraction
Aggregation
Loading
Data Engineering Issues
Implementation Process
Conclusion

Chapter 9

The Design of the New Category

Management System
171

Introduction
Concepts Underlying the New Category Management System
Implementing Next Generation Category Management
Improving the Category Management Process
Clustering
Simplification and customization
Measurement and feedback of results
Category tactics
Roles of Category Partners
Conclusion

Chapter 10

133
134
139
143
144
147
151
155
156
156
157
159
161
165
169

What does a Category Plan look

like?

Overview
Introduction to Super Jims
Corporate & Department Goals
Super Jims Customer Service Strategy
Category Definition
Category Product Grouping Process
Category Definition Summary
Category Role
Cross Category & Qualitative Analysis
Category Role Summary
Assessment
Consumer Needs
Consumer Demographics
Consumer Purchase Timing

171
171
172
177
178
179
180
181
182
184

185
185
185
185
186
187
189
191
191
194
196
196
197
198
200

vi

Consumer Purchase Behavior

Consumer Purchase BehaviorCausal Activity
Trends and Market Shares
Market Share Gap Analysis
Market Share Gap Quadrant Chart
Profit Contribution
Profit Contribution Quadrant
Retail Asset Performance
GMROI Quadrant
Product Supply Analysis
Opportunities & Actions Worksheet
Scorecard Development
Category Strategies
Category Stratogram
Category Tactics
Assortment
Market Coverage
Market Coverage AnalysisSegment Fragmentation
Market Coverage AnalysisCompetitive Market Coverage
Market Coverage AnalysisSales and Profit Productivity
Market Coverage AnalysisCoverage Cut-off
Coverage Cut-Off Summary
Deletion Validation
Addition Validation
Assortment Summary
Pricing
Pricing AnalysisPromoted Price Gap
Pricing AnalysisNon-Promoted Price Gap
Pricing Summary
Promotion
Promotion AnalysisBest Weeks/Worst Weeks
Promotion AnalysisPromotion Performance
Promotion Analysis - Price Reduction Analysis History
Promotion Summary
Shelf Presentation
Shelving AnalysisCompetitive
Internal Space Analysis
Shelving AnalysisCategory Shelving Tactic
Shelving Summary
Category Tactogram
Plan Implementation
Monitor Performance
Category Review

vii

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