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Step 4: Category Scorecard /

Performance Measures

The development of category performancemeasures involves setting measureable targets interms of sales, stock turn, profit & Gross MarginReturn on Investment (GMROI).

Category performance measures need to beestablished for measuring category performance.

Category performance measures determine thetarget objectives that will be set by the retailer &supplier for achievement from implementation ofthe Category Business Plan.

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To develop a Scorecard:

1. Set-up the criteria for the guiding principles.

2. Design a system to generate & manage the

scorecard measures.

3. Acquire the technology necessary to maintain thescorecard.

4. Propose incentives for both retail employees &suppliers/vendors upon achievement of goalsestablished by the score-card.

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Guiding principles of category

scorecard:

Relevant to the corporate strategy.

Balanced between the retailer &suppliers/vendors.

Encompass the entire business activity of thecategory.

Standardized across business units for ease ofcomparison across the retailers business.

Timely, the scorecard is relevant only if the datais timely.

Understandable by all stakeholders.

Accurate, the scorecard must accurately assessthe performance of the category.

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Typical Scorecard:Consumer Current Target

Retention Level _______________ _______________

Purchase Incidence _______________ _______________

Satisfaction Rating _______________ _______________

Share

Category of Department _______________ _______________

Category of Market _______________ _______________

Sales

Category _______________ _______________

Growth _______________ _______________

Sales/Sq. Ft/Week _______________ _______________

Profit

Gross Profit _______________ _______________

Gross Margin _______________ _______________

Gross Profit /Sq. Ft/Week _______________ _______________

Private Label

Sales _______________ _______________

% of Gross Profit _______________ _______________Gross Margin _______________ _______________

Product Supply

Days of Supply _______________ _______________

Inventory _______________ _______________

Turns _______________ _______________

GMROI _______________ _______________

Service Level _______________ _______________