Attachment 2
CATEGORY, SEGMENT, AND SUB-SEGMENT PROCESS
Each category is treated as a stand-alone business unit, with its own unique set of targets and
strategies for assortment and sales. Our goal is for each category to have the right product, at the
best price, in the right location, and available to meet projected sales. In essence, the consumer
drives the category and the results in dollars, packages, and savings are a direct measurement of
how well we are understanding and satisfying our customers’ needs. All products will be
included in a category definition and assigned into segments and sub-segments. For example, all
facial tissue products would be included in a category, regardless of where they may be
merchandised (on shelf, club pack, case lot, one time buy, seasonal). When reviewing sales, the
category buyer will be measured on the performance for the entire category as well as the
segments and sub-segments within the category.
We have created six roles to identify consumer needs and expectations, role within the store, as
well as determining assortment and promotion priorities that will be allocated to a category,
segment and sub-segment. A role can be used to bring consumers into the store, increase foot
traffic, support routine shopping needs, be a destination for seasonal or occasional purchases, a
one-stop-shop, or for convenience. The following are the six roles:
Destination: It’s a purpose of visit for shopper; high purchase frequency and activity.
Preferred: Necessary; needs to be in store.
Routine: Everyday staple items for pantry.
Convenience: For pleasure and convenience; so consumers don’t have to shop at
competition.
5. Seasonal Destination: It’s the purpose of the store visit for a consumer
6. Seasonal Convenience: Main periods are holidays, Christmas, Easter, Super Bowl, Sun
Care
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Our objective is to create one common vision for each category that creates a distinct,
measurable and manageable grouping of products that will allow DeCA and suppliers to
optimize business results by meeting or exceeding customers’ expectations and needs. To reach
that objective DeCA’s sales team must:
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Identify consumer needs and expectations
Identify a measurable and manageable group of products
Identify and validate category segmentation; and
Develop consumer-oriented names for the category and its components
Defining the segments and sub-segments within each category will be based on the process
consumers follow when deciding to purchase products within each category. We believe
utilization of research-based consumer-decision trees best enable us to define and manage
categories consistent with how shoppers make purchase decisions. Following this methodology
will result in improved assortment and merchandising decisions and result in more items that
customer want on our shelves and, ultimately, in their baskets.
The category, segment and sub-segments will be used to measure performance and effectiveness
reaching customers, identify like-items on the planogram, and will be used for category reviews.
The data will be enable the buyer to have a close look at each segment and sub-segment, identify
potential issues between the present results and the role, and identify areas for growth.