Consumer-Centric Category Management

In some parts of the world, especially in developing markets, category management today remains a stretch goal – a new idea full of untapped potential. In other areas, the original eight-step process that emerged in the late 1980’s forms the foundation of many companies’ approach to category management. In still others, particularly in developed countries like the U.S., the U.K., and others, refinements are being made – most of them designed to place consumer understanding front and center.

New ideas are emerging – from "trip management" to "aisle management" to "customer management." Whether a new descriptor emerges to replace "category management" is yet to be seen. Even if that does happen, what won’t change is the overall objective – to help retailers and their manufacturer partners succeed by offering the right selection of products that are marketed and merchandised based on a complete understanding of the consumers they are committed to serving.

This book, which explores both the state of and the state-of-the-art in category management, is for everyone with a vested interest in category management. It can serve such a broad audience because category management is about bringing a structured process to how executives think and make decisions about their businesses, no matter what information and information technology they have access to.

Chapter 0 Introduction—Why Category Management Is More Important Than Ever 1

Part I In the Beginning—the Purpose of Category Management

Chapter 1 The Evolution of Category Management and the New State of the Art 13

Chapter 2 Category Management Begins with the Retailer’s Strategy 33

Part II The Eight Foundational Steps of Category Management

Chapter 3 Step One: Define the Category Based on the Needs of Your Target Market 67

Chapter 4 Step Two: Assign a Role to the Category That Best Supports the Retailer’s Strategy 77

Chapter 5 Step Three: Assess the Category to Find Opportunities for Improvement 95

Chapter 6 Step Four: Set Performance Targets and Measure Progress with a Category Scorecard 111

Chapter 7 Step Five: Create a Marketing Strategy for the Category 123

Chapter 8 Step Six: Choose Tactics for Category Assortment, Pricing, Promotion, Merchandising, and Supply Chain Management 133

Chapter 9 Step Seven: Roll Out the Plan 165

Chapter 10 Step Eight: Review the Category’s Performance Regularly and Make Adjustments as Needed 173

Chapter 11 Bringing the Consumer into Category Management—A New Take on the Eight Steps 179

Part III Category Management Success Stories

Chapter 12 General Mills—Going Beyond the Categories 201

Chapter 13 Big Y—Focusing on Implementation 207

Chapter 14 SUPERVALU—The Last Three Feet of Category Management 217

Chapter 15 CROSSMARK—Just the Facts 241

Chapter 16 Acosta—Multiplying the Impact of Category Management 251

Chapter 17 Chiquita—Extending Category Management to Perishables 259

Chapter 18 The Hershey Company—Linking Consumer Insights and Customer Strategy 275

Chapter 19 Miller Brewing—Tapping Category Management for Competitive Advantage 285

Chapter 20 Hewlett-Packard—Taking Category Management beyond Traditional CPG 295

Part IV The Way Forward

Chapter 21 Lessons Learned from the Real World 303

Chapter 22 Proactive Category Management 309
Shan Kumar

Chapter 23 Linking Category Management and Loyalty Marketing 319
Glenn Hausfater

Chapter 24 The New Category Management Emerges 335
Dirk Seifert

Acknowledgments 343

Index 347

"It provides an insight into how they [companies such as Hershey and Hewlett-Packard] have used category management to succeed and how to apply their methods in your own organisation." (Supply Management, April 2006) ACNielsen, a VNU business, is the world's leading marketing information provider. Offering services in more than 100 coun-tries, the unit provides measurement and analysis of marketplace dynamics and consumer attitudes and behavior.

JOHN KAROLESKI is Editor of an e-magazine called CPGmatters.com. It covers in-store marketing and category management. He is the coauthor of two books, Target 2000: The Rising Tide of TechnoMarketing and All About Sampling. He was formerly senior editor of Supermarket News and editor in chief of Brand Marketing.

AL HELLER, President of Dis-tinct Communications, LLC, is the author of numerous consumer packaged goods industry studies and three books. He was formerly editor in chief of Nonfoods Merchandising and Supermarket HQ Quarterly, and executive editor of Drug Store News.

In recent years, new technologies, new approaches, and new research have significantly al-tered the category management landscape.

In addition to a comprehensive review of the discipline, Consumer-Centric Category Management offers guidance in the form of real success stories from top brands like General Mills, Chiquita, Hershey, and Hewlett-Packard. You'll learn how they use category management to succeed and how you can apply their success to your own efforts.

Arguing that category managerstoo often neglect the most important part of the equation—the consumer—this indispensable guide helps marketers keep up with the evolution of category management without abandoning the proven basics. Marketers who want to win in today's cutthroat marketplace should start here.

New Strategies and Cutting-Edge Practices in Category Management

When category management first appeared, it turned marketing basics into an organized eight-step process that helped retailers and manufacturers sell products more efficiently and effectively. But over the years, many marketers—obsessed with the bottom line—have forgotten that the key to sales success lies in knowing the consumer. This book demonstrates how today's leading category management practitioners put the consumer first. The book also applies powerful new insights to category management basics.

From initial planning to pricing, promotion, and supply chain management, every aspect of category management is covered, including guidance on how to implement category plans effectively and keep them on track. Plus, the classic eight-step process that forms the foundation of successful category management is reviewed in detail, showing marketers the latest methods of implementation for today's consumer marketplace.