category leadership foundation

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CATEGORY LEADERSHIP FOUNDATION© 2015 The Partnering Group, Inc.

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CATEGORY LEADERSHIP FOUNDATIONCOURSE HANDOUT


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TABLE OF CONTENTS

Module 1: Introduction

Module 2: The Early Years and Best Practices

Module 3: Changes in the Retail Landscape

Module 4: Todays Process: Category Leadership

Course Wrap-up

Contacts

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MODULE 1: INTRODUCTION

WHAT YOU WILL DO:

Examine the purpose, rationale and evolution of the industry’s best practices in category management. You’ll build awareness and understanding through interactive learning that illuminates the best practice approach. You’ll start by learning the history of Category Management and the early processes and changes in retail that led to Category Leadership. Finally you’ll learn about the 8 steps that make up today’s best practice approach called Category Leadership.

WHAT YOU WILL ACHIEVE:

• Identify the purpose, rationale and practicesof Category Management

• Identify the forces that drove theintroduction of Category Management

• Recognize how Category Managementfirst looked

• Indicate advantages stemming from theevolution of Category Management

• Identify the changes in the retail landscape

• Explain the role of the Shopper

• State how retailers have evolved

• Recognize the new CategoryLeadership process

• Explain how Category Leadership planning isdone at suppliers and retailers

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MODULE 2: THE EARLY YEARS AND BEST PRACTICES

OVERVIEW:

The Category Management principles that are commonplace in the retail industry today weren’t always in existence. In this module you’ll learn the forces that drove change in the retail landscape. You’ll look at what created the need for Category Management and how Category Management first looked.

OBJECTIVES:

• Identify the purpose, rationale and practices ofCategory Management

• Identify the forces that drove the introduction ofCategory Management

• Recognize how Category Management first looked

• Indicate advantages stemming from the evolution ofCategory Management

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TRENDS IN THE RETAIL LANDSCAPE

RETAILER’S BUSINESS PLANSThe retailer’s business planning approach was often very simplistic. Frequently, there was no formalized business planning process.

SHOPPER UNDERSTANDINGThere was very little customer dialogue and limited shopper understanding at this time. Products were not viewed as consumer-centric categories.

SUPPLIER RELATIONSHIPSTypically, the level of retailer-manufacturer collaboration was very low, and at times the buyer-seller relationship was adversarial.

MERCHANDISINGStore shelving and merchandising decisions were made based on past practices, personal relationships, and the best deals.

CATEGORY PRIORIZATIONCategory Prioritization was not broadly applied. Often, all categories were treated equally and there were no criteria for prioritization.

PERFORMANCE MEASURESPerformance measures were simplistic and often there were very few of them. The primary measures that were used looked at sales (units or dollars) or Gross Profit Margin.

RESEARCH & DATAThere was minimal utilization of research and data. Typically, research was provided by the manufacturers and there was tremendous inconsistency.


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ORIGINAL CATEGORY MANAGEMENT PROCESS

Many of the issues that were identified as problems in the 1990s were addressed by Category Management. The practice of

Category Management had a tremendous impact on the retail industry.

MODULE 3:CHANGES IN THE RETAIL LANDSCAPE

OVERVIEW:

Category Management was a great solution for the challenges that faced the retail industry in the 1990s. And by the late 1990s Category Management became the normal way of doing business. However, a lot changed in the retail landscape over the years. And in order for Category Management to remain relevant, it needed to be re-examined in light of all that had changed. In this module you’ll learn the changes that occurred in the retail landscape that created the need to re-examine Category Management.

OBJECTIVES:

• Identify the changes in the retail landscape

• Explain the role of the Shopper

• State how retailers have evolved



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MODULE 3: CHANGES IN THE RETAIL LANDSCAPE

CHANGES IN RETAIL LANDSCAPE

Clearly channels are not as tightly defined and the traditional boundaries are gone.


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MODULE 3: CHANGES IN THE RETAIL LANDSCAPE

ROLE OF THE SHOPPER

DIVERSITYShopper diversity has been over-simplified in the past. A target shopper for stationary items was women ages 29-51. However, that range is too broad to be meaningful and can be sliced indefinitely by region, economic class, ethnic background, education, etc.

CONTROLThe shopper has access to more information than ever. The shopper can now do extensive research on the Internet about a product.

CONVENIENCEConvenience has become a top-priority for today’s time-starved shoppers. More and more retailers and suppliers are offering time-saving options for the shopper, from one-stop shopping to ready-made meal ideas.

MODULE 4:TODAY’S PROCESS: CATEGORY LEADERSHIP

OVERVIEW:

You may be wondering why the process was adjusted if it worked so well in the beginning. In addition to the changes in the industry, the process itself has evolved over time. Now that we have experience with the process, we don’t have to go through everything with the same detail that we did in the beginning. Through this experience, approaches to planning and research have been streamlined as well. In this module you’ll learn about the changes to Category Management and how Category Leadership works today.

OBJECTIVES:

• Recognize the new Category Leadership process

• Explain how Category Leadership planning is done atsuppliers and retailers



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MODULE 4: TODAY’S PROCESS: CATEGORY LEADERSHIP

TODAY’S CATEGORY LEADERSHIP PROCESS

1. Objective Setting & AlignmentEstablishes the context and parameters for the category planning process

2. Category DefinitionEstablishes which products will be included, and how they will be grouped and structured

3. Insights IdentificationEstablishes longer-range direction, and helps appropriately targeted, meaningful analysis

4. Category Vision & RoleEstablishes the priority and importance of a category in the retailer’s overall business

5. Category Growth StrategiesEstablishes “What” you will focus on, which provides the basis for tactical direction for the category

6. Tactical PlanningEstablishes "How" you will achieve the category strategies

7. Plan Activation & Target SettingInvolves creating the detailed implementation plan required to successfully implement tactics

8. Review & RefineEvaluates tactic results and their impact on the category


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MODULE 4: TODAY’S PROCESS: CATEGORY LEADERSHIP

CATEGORY LEADERSHIP PLANNING PROCESSBroader context

Suppliers create internal Category Leadership Plans, complete with a suite of tools and information for the retailer or distributor.

Retailers, develop total store and department plans focused on achieving their corporate objectives.

Together these activities enable and inform a productive collaborative planning approach that is

the Category Leadership Planning Process.


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COURSE WRAP-UP

As you’ve seen throughout this course the Category Leadership process has evolved to meet the times but the objective and definition

are virtually unchanged. There’s a new focus now on the consumer and shopper. This new process has been implemented into the industry

and retailers are delighted with their results.

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CONTACT

TPG’s Category Management Leadership College is an unparalleled capability development program based upon rigorous assessment, Best Practice curriculum and innovative e-based & classroom delivery.

For all technical questions and issues please contact our support desk:Phone number: 1-513-429-2841 Email address: [email protected]

For more information about TPG University please visit www.thepartneringgroup.com or contact TPG at 513-469-6840.

© 2020 The Partnering Group, Inc. All rights reserved.

No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and/or retrieval system, without permission in writing from the copyright holder.

© 2020 The Partnering Group, Inc. 13

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