catman for csd

Category ManagementCSD – MT

Category Management

“ A Supplier - Retailer Process of Managing Categories as Strategic Business Units, Producing Enhanced Business Results by Focusing on Delivering Consumer Value “

SUPERMART

Category Management is all about growing TOTAL category value.

CATEGORY MANAGEMENT

HUL CSD’s URC SHOPPER

WIN WIN WIN

Category growth

Trade relations

Credibility

Increase category share

Higher standards of service

Targeted individual needs

Reduced out of stocks

More convenient shopping

Category growth

Full profit realisation

Customer loyalty

Our Endeavour

CATMAN PROCESS

Determine products that make up the category and its segmentation from the consumer’s perspectiveAssign role based on cross-category analysis and comparison considering consumer, retailer, and market information

Conduct analysis on subcategories, segments, brands, skus based on consumer, retailer, supplier and market information

Establish the category’s performance measures and their targets

Develop marketing, product supply and, if necessary,in-store strategies for the category to deliver category role and performance targetsDetermine optimal category assortment, product supply, pricing, shelf presentation, promotion and introduction tactics that ensure the category strategies are implemented

Develop and implement the category business plan through specific schedule and list of responsibilities

Select Reputable Supplier to entrust & coordinate the whole Catman process

CATEGORY DEFINITIONCATEGORY DEFINITION

CATEGORY ROLECATEGORY ROLE

CATEGORY ASSESSMENTCATEGORY ASSESSMENT

CATEGORY SCORECARDCATEGORY SCORECARD

CATEGORY STRATEGYCATEGORY STRATEGY

CATEGORY TACTICSCATEGORY TACTICS

PLAN IMPLEMENTATIONPLAN IMPLEMENTATION

CATEGORY REVIEWCATEGORY REVIEW

SELECT CATEGORY CHAMPION

SELECT CATEGORY CHAMPION

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5

Assortment & Planograms in Category Management

Category Assortment

• Determining the most optimum sku mix of a category• How much should be cut?

– This is based on the agreed category role (Destination, Preferred, Convenience, Seasonal Destination, and Seasonal Convenience)

– Destination Category should have the widest and deepest assortment (efficiency is not a concern); the rest of the roles dictate that the assortment “meets the needs/limitations (space)” i.e. efficiency is the name of the game

• Commonly used KPI’s in determining the optimum assortment– Sales Value, Sales Volume, and GMROII

• A planogram is a visual diagram which shows how the category should be displayed on shelf– Based on how the consumer/shopper “sees” and/or “buys” the category i.e.

based on the category construct or purchase decision tree

• Basis for space allocation– Generic Planogram -> AC Nielsen Retail Audit Data– Customer Specific Planogram - > Customer POS Data, Performance Index agreed

jointly with the retailer (value share, volume share, GMROII, etc)

• Basis for brand location on shelf is the general planogram guideline

Category Shelf Planogram

Principles in Allocating Space…

• Highest contributing sub-category, segment, sub-segment, benefit platform, or brand is given priority in allocating space in the primary shelf fixture

• Based on Traffic Flow• Vertical display orientation for sub-category,

segment, sub-segment, and benefit platform is recommended; only at brand level is a horizontal display orientation allowed

• Price Point Discount -> Popular -> Premium from left to right

• Pack Size Placement » Small to Big pack sizes from top to bottom

(safety issue)» Small to Big pack sizes from left to right (90% of

shoppers are right handed; they get a product off the shelf with their right hand)

Basic Shelf Planogram Principles

• Sub-Category, Segment, Level, and Brand Placement– The highest contributing sub-category, segment, level, and brand is

placed “first in traffic”– Middle aisle preferred is the category shelf aisle is less than 15 ft

BAR LIQUIDPOWDER

Henko / Ariel / Surf Excel Matic

Ariel 2 Shelf

Surf Excel QW 3 ShelfSurf excel Matic 4 Shelf Surf Excel Blue 3 Shelf

HenkoHenko

Tide 3 ShelfRin 2 ShelfHenkoMr White / Wheel

Rin Surf Excel 3 ShelfHenko / TideRin Advance / Wheel 2 Shelf

Surf Excel / Godrej / EzzeVanish 2 ShelfRobin / UjalaRobin / ComfortRobin / AlaRevive/ Bambi / Easy On


• Shelf Layer priority• 7 ft Shelf -> 3rd and 4th shelf layer• 6 ft Shelf -> 2nd and 3rd shelf layer• 5 ft shelf -> 1st and 2nd shelf layerIts not About getting the top Shelf visibility in all the Bays across

6 bays, Instead get the right visibility in the first 4 Bays only


• Minimizes out of stock and overstocked skus due to correct space allocation

• Provides “ease of shopping” for the consumer/shopper since the category is displayed based on how she “see’s”/”buys” the category

• Used by retailers in “highlighting” certain sku’s/products i.e high GMROII sku’s, NPI’s, etc

• Ensures consistent look of the category across geographies and store formats

Benefits of “Planograming”

11 Apr 202313

Frame Work Category:_____________________

Category Definition . . . Category Construct . . .

11 Apr 202314

Category Definition . . . Skin Cleansing All skin cleansing products, foaming or otherwise, which are used to provide skin cleansing - with or without water - for body, hand and face - including bars, liquids (shower and hand (in an out of home), gels, applicators, face washes, bath additives, wipes, sanitizers and soap strips and excluding face mask, specialist face cleansers (make up removers) and traditional home remedies, toners and astringentsCategory Construct . . .

Personal Wash Planogram - Mumbai

Depth = 36cm (Max)

18cm (Min)

Dove

PearsLifebuoy & Liril

Lifebuoy

Lux

Lifebuoy & Lux

Lux

Hamam & Breeze

Rexona

No of Shelves Allocated for HUL Brands in the

total Category.

The Brands Block on Dove, Pears, Lux, Rexona, Hamam, Lifebuoy & the complete HUL

Block.

Personal Wash Planogram - Mumbai

DovePearsLiril

Lux

Lux & Breeze

Lux

HamamRexona Lifebuoy


total Category.


Block.

Personal Wash Planogram - Chennai

PERSONAL WASH 64%Dove

Liril and Lifebuoy Lifebuoy

PearsLux

Rexona

Hamam


total Category.

The Brands Block on Dove, Pears, Lux, Rexona, Hamam, Lifebouy & the complete HUL

Block.

Dove

Pears Amber

Pears Amber and Oil Control

LuxHamam

Liril and HamamRexona

Lifebuoy

Lifebuoy

Personal Wash Planogram - Chennai


total Category.


Block.

Personal Wash Planogram Delhi

Depth = 36cm (Max)

18cm (Min)

DovePears

Pears & LirilLifebuoy

LuxLux

HamamRexona


total Category.


Block.

DovePears

Pears & LirilLux

Lux

HamamRexona Lifebuoy


Block.


total Category.

Personal Wash Planogram Delhi

Personal Wash Planogram - Calcutta

Depth = 36cm (Max)

18cm (Min)

DovePearsLiril

Lux

Lux & Breeze

LuxHamamRexona

Lifebuoy & Rexona


Block.


total Category.

Depth = 36cm (Max)

18cm (Min)

DovePears

LuxLux & Breeze

LuxLiril

HamamRexona

Lifebuoy

Personal Wash Planogram - Calcutta


total Category.


Block.

11 Apr 202323

Category Definition . . . Fabric CareThe Indian Laundry category consists of all products that clean and care for clothes. It includes all products that are used before wash, during wash and after wash Excludes – all out of home laundry services – dry cleaning, ironing, dhobi services, launderettes.Category Construct . . .

Fabric Wash Planogram

Surf Excel Quick Wash

Surf Excel Matic Surf Excel Blue

Rin Advance

Wheel Gold

Surf Excel Bars

RinAdvance

Bars

Wheel &501 Bars


total Category.

The Brands Block on Surf XL Auto, Surf QW, Surf XL Blue, Rin, Wheel & the complete HUL Block. –

Separate for Powders & Bars

Fabric Wash Planogram

FABRIC WASH 61%Machine Wash Concentrate Colour control Whiteness & Mass UsageSurf Excel Matic Surf Excel Quick Wash Surf Excel Blue Rin and Wheel Gold

Surf Excel Bars

RinAdvance

Bars

Wheel &501 Bars


total Category.

The Brands Block on Surf XL Auto, Surf QW, Surf XL Blue, Rin, Wheel & the complete HUL Block. –

Separate for Powders & Bars

Category Definition . . . The hair care Category consists of all types of hair products sold to consumer in mass retail and salons including daily hair care, oils, colorants & therapeutic hair applications.

Hair Care Planogram

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29

Store Layout

• Store Space is an asset.

• Store space is limited.

• Challenge: – “How can we best use store space to maximize

business potential?”

Store Realities

Increase Basket Spend

(Transaction Size)

Frequency Of visit

(Purchase)

An operation management tool which aims to maximize profit per square measurement via

efficient lay-outing and allocation of store space

Driving Traffic(Penetration)

Objectives of Practical Store Layout

Drive Sales& Value

Drive Sales& Value

CIRCULATION PATH

SPACE ALLOCATION

EFFECTIVE ADJACENCIES

1

3

2

Practical Store Layout Process

CIRCULATION PATH

What is it all about?> Proper placement of high traffic categories to the entire storeHow can it benefit our business?Increase Purchase Potential> Encourages shoppers to visit the whole of the store by guiding them with the placement of key categories> Increased shopper exposure for low traffic categories when partnered with high traffic categoriesGreater shopping convenience> Prevents lane clogging by distributing key categories around the store

1

Practical store lay-out process



What is it all about?> Grouping related categories together based on using different analysis tools. How can it benefit our business?Increase Purchase Potential> Influence complementary category purchasesGreater shopping convenience> Makes it easier for shoppers to buy what they need since related categories are grouped together

2

SPACE ALLOCATION

What is it all about?> assign proper space to categories based on their store performance and contribution How can it benefit our business?Greater efficiency> Ensures enough stocking for high demand categories to help us avoid out-of stocks during peak hoursGreater shopping convenience> Increases category visibility to make it easier for shoppers to find what they want> Increases shopping space for the category to avoid overcrowding in the area

3


Full Store Layout - Macro view


SPACE ALLOCATION

CIRCULATION PATH1

3

2

Fresh Section

Cooking Essentials & Party Preparation

Snacks

Quick Meals

Healthy Selection / Beverages

Breakfast

Baby Care

Personal Care

Home Care

Check-out-Counters

Beverage

Fresh Section


Snacks

Quick Meals


Breakfast

Baby Care

Personal Care

Home Care

Legend :

High Traffic

Low Traffic

Check-out-Counters

CIRCULATION PATH1

Beverage


• Principle- arranging the products based on shopper decision flow will also make it

more convenient for shoppers to shop in-store

House WareHousekeeping

Health & Beauty

FemininePaper

DiapersInfant Milk

Regular MilkDairy

Beverages

Canned Fruits

Canned Veggies

Soups

Category Adjacencies or Clusters

Canned Meat

Cooking Essentials

Dressings & Spreads

Pasta & Noodles

Breads

DetergentsSnacks

ConfectioneryHomeCare

PersonalCare

BabyCare

Breakfast

Cooking Essentials

QuickMeals

Breakfast

Beverages, Snack& Sweets

EFFECTIVE ADJACENCIES2


Fresh Section


Snacks

Quick Meals


Breakfast

Baby Care

Personal Care

Home Care

Check-out-Counters

SPACE ALLOCATION3

Division % Value

Food 71%

Non-Food 29%

Total 100%Source: Nielsen Retail Audit

71% FOOD

29%NON-FOOD

Beverage


11 Apr 202340

Thank You

catman for csd

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