Category Management of Future Group

Document Sample
Category Management of Future Group Powered By Docstoc
					REINVENTING CATEGORY MANAGEMENT
TAKING THE RIGHT STEP AT THE RIGHT TIME



              Presented By
          Sonny King, CEO



      IRI Summit - March 1, 2005
REINVENTING CATEGORY MANAGEMENT
TODAY’S AGENDA




    The Current Situation

    What Comes Next

    The Advantage Perspective
THE SEARCH IS ON FOR “THE NEXT BIG THING”

  The Evolution of the “Next Big Thing” in CPG



   1970s         1980s        1990s          2000s

      Brand        Trade       Category
     Marketing    Marketing   Management          ???




                                           THE CURRENT SITUATION
WHILE THE SEARCH CONTINUES, CATEGORY
MANAGEMENT REMAINS A RETAILER PRIORITY

                   Likely Action on Category Management
                                      (Grocery Channel Retailers)


                        Very Likely 100
                                          73.6
         Action Index




                                                          63.6            63.8              65.0
                                                                                   56.5
                            Likely   50




                        Not Likely   0
                                          2000            2001            2002     2003     2004
                         Issue Ranking:     2               2                  3    5        2


Source: Annual Report of the Grocery Industry, Marketing Guidebook 2000-2004


                                                                                     THE CURRENT SITUATION
SO, MANUFACTURERS CONTINUE TO INCREASE
THEIR INVESTMENTS IN CATEGORY MANAGEMENT

       Overall Category Management Investment
               (% of Surveyed Manufacturers Who Increased)


                                               88%                    90%      88%
                          80%




                      <$500MM             $500MM-$1B                 $1B-$3B   >$3B

                                                   Annual Sales

Source: CMS Consulting, Sales Trac 2004 Annual Benchmarking Report


                                                                                THE CURRENT SITUATION
NEVERTHELESS, CATEGORY MANAGEMENT MUST
ADAPT TO ADDRESS TODAY’S MARKET PRESSURES




                              THE CURRENT SITUATION
ADVANTAGE HAS BEEN DEEPLY INVOLVED WITH
CATEGORY MANAGEMENT FOR SEVERAL YEARS

The Category Management Best Practices Project
                        (mid-1990s)
                                         Collaborative
          Scorecard                     Trading Partner
                                         Relationships

                           Strategy
                           Business
                           Process


          Information                    Organization
          Technology                     Capabilities

                    The Partnering Group
                              &
                Advantage Sales and Marketing

                                                  THE CURRENT SITUATION
THERE ARE SEVERAL PATHS INTO THE FUTURE,
BUT ONLY ONE THAT REALLY MAKES SENSE

    The Evolution of Category Management

                                        Total Consumer
                                         Management




   THE PAST      THE PRESENT   THE FUTURE    Store-Level
                                                Focus
    Category       Category
   Performance     Consumer
      Focus          Focus

                                        Total Aisle/Store
                                          Management


                                            WHAT COMES NEXT
STORE-LEVEL CATEGORY MANAGEMENT WILL
REQUIRE MORE ROBUST ANALYTICAL CAPABILITIES

The Challenge of Store-Level Category Management




    From Chain-Wide            Store-Specific


                                         WHAT COMES NEXT
STORE-LEVEL CATEGORY MANAGEMENT WILL
REQUIRE WORKING SMARTER AS WELL AS HARDER

Matching a Category Plan to a Store’s Potential
          High
          Sales Performance




          Low
                              Low   Sales Potential   High

                                                             WHAT COMES NEXT
THE REWARDS OF STORE-LEVEL CATEGORY
MANAGEMENT CAN BE VERY SIGNIFICANT

          Store-Level Value Chains

             Sales         Sales      On-Target      Maximized
         Performance   Performance   Merchandising    Business
           Analyses     Diagnostic    Strategies       Gains


           WHAT           WHY           HOW
                                                        $
           WHAT           WHY           HOW
                                                        $
           WHAT           WHY           HOW
                                                        $
                                                     WHAT COMES NEXT
GOING TO STORE-LEVEL REQUIRES 360o OF
“BEST IN CLASS” RESOURCES

          360o of Critical Resources



              Hardware    People




               Software    Data




                                       WHAT COMES NEXT
SALES AND MARKETING AGENCIES WILL BE THE
ONES TO SHOULDER MUCH OF THE BURDEN

      Store-Level Category Management




                                   WHAT COMES NEXT
LEADING THE WAY TOWARDS STORE-LEVEL
CATEGORY MANAGEMENT IS CONSISTENT
WITH ADVANTAGE’S MISSION

               Our Mission




                             THE ADVANTAGE PERSPECTIVE
ADVANTAGE HAS THE SCALE THAT LEADING
MANUFACTURERS NEED AND EXPECT

                    Our Team




      1,200 Clients

      $40 Billion Sales


                               THE ADVANTAGE PERSPECTIVE
AMONG OUR CLIENTS ARE LEADING
MANUFACTURERS IN ALL PARTS OF THE STORE

              Leading Clients




                                THE ADVANTAGE PERSPECTIVE
WE OFFER OUR CLIENTS A COMPLETE PORTFOLIO
OF VALUE-ADDED SERVICES

                     CUSTOMER
                     INTERFACE
        BRAND                        CATEGORY
      MANAGEMENT                    MANAGEMENT



 CONSUMER                                       RETAIL
 MARKETING                                     SERVICES



      FINANCIAL                       SUPPLY
     MANAGEMENT                       CHAIN
                   ADMINISTRATION


                                    THE ADVANTAGE PERSPECTIVE
ADVANTAGE HAS A DECISION SUPPORT PLATFORM
BUILT WITH “BEST IN CLASS” PARTNERS LIKE IRI

       Advantage: Technology Partners




                              THE ADVANTAGE PERSPECTIVE
OUR PEOPLE ARE ALSO “BEST IN CLASS” ACROSS
OUR PORTFOLIO OF SERVICES

 Advantage: Experienced Knowledge Workers




                             THE ADVANTAGE PERSPECTIVE
OUR STRONG RETAILER ALIGNMENT ENABLES US
TO TURN IDEAS INTO RESULTS

    Advantage: Strong Retailer Alignment




                              THE ADVANTAGE PERSPECTIVE
WE ARE COMMITTED TO INTEGRATING THE
CATEGORY MANAGEMENT PROCESS INTO
OUR KEY BUSINESS FUNCTIONS

  Marketing    Supply Chain          TPM




                              THE ADVANTAGE PERSPECTIVE
THE SEARCH FOR “THE NEXT BIG THING” CAN
NEVER STOP

  The Evolution of the “Next Big Thing” in CPG



  1970s        1980s        1990s        2000s              2010s

    Brand        Trade       Category     Store-Level
   Marketing    Marketing   Management
                                           Category
                                            Mgmt.
                                                                ???
                                                             Global Data
                                                              Sync
                                               All at the    CPFR
                                             Store Level
                                                             CRM
                                                             TFM




                                             THE ADVANTAGE PERSPECTIVE
ADVANTAGE IS READY TO TAKE CATEGORY
MANAGEMENT TO THE STORE LEVEL AND
MAKE IT WORK




   The Right Focus    The Right Resources

   The Right People   The Right Stuff




                               THE ADVANTAGE PERSPECTIVE
Improving Your PoweRanking



        February 28, 2005

				
DOCUMENT INFO
Description: Category Management of Future Group document sample