Collaborative Category Management
ALA Commissary Roundtable
May 1, 2014
Blaine Ross – EVP Global Sales & Marketing CMA
Adjunct Professor – DePaul University
s
Blaine T. Ross
•
Currently Executive Vice President Global Sales & Marketing
Category Management Association www.cpgcatnet.org
•
Adjunct Professor - DePaul University
•
25 years experience in Sales, Marketing and Category Management consulting
working with leading retail and manufacture organizations
Agenda
• Category Management Association Overview
• Collaboration Partnership CMA / ALA / DeCA / Suppliers
• What does DeCA expect from suppliers?
• Best Practices and how to use customer insights
• Global Certification Initiative
• Talent Acquisition / College Recruiting
• Future of effective Category Management 2.0
CMA Overview
– The CMA is a global community of professionals
– Our purpose is to deliver a compelling ROI on Cat Man by
improving the overall shopper experience to include:
• Sharing Industry Best Practices
• Encouraging Member Interaction
• Providing Thought Leadership
• www.cpgcatnet.org
What is the
Category Management Association?
The CMA is an association for companies who want to improve
the capabilities of their professionals in:
Category
Management
Shopper
Insights &
Shopper
Marketing
Planogram
&
Space
Management
In-Store
Execution
&
Merchandising
The only organization that:
• Certifies CatMan professionals through industry-wide standards
• Serves as an unbiased central resource for
industry information and best practices
5
Sample Companies working with CMA
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Retailers Care about Category Management
Industry Initiative
Category Management
Percent of Respondents
66.5%
Sustainability
38.5%
Diversity
31.1%
Promoting Your Company as an Employer of Choice
31.1%
On-pack nutrition labeling
26.1%
Produce Traceability Initiative (PTI)
19.9%
Geographic Expansion
13.0%
GS1 DataBar
9.3%
Source: Progressive Grocer Market Research 2012
CMA Membership benefits include…
 Share Groups
 Certification
 Best Practice Coaching
 White Paper Availability
 Private networking
 Membership rate for events
 Access to CMA’s e-Newsletter
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Weekly newsletter
o Delivered Wednesday afternoons
o Upcoming industry events and Web seminars
o Global focus
o Tips from solution partners
o Share Group meeting agendas
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Monthly Share Groups
Insights
&
Analytics
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Shopper
Marketing
Space
Mgmt.
IP
Sessions
Military
Solutions
Demos
Global Industry Events
• CMA Annual Conference
Sept. 30 – Oct. 2, 2014 - Orlando, FL
• LatAm Conference
May 21 – 22, 2014 – Monterrey, MX
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Definition of Category Management?
CATEGORY MANAGEMENT Is:
“A Retailer or Distributor/Supplier Process
Of Managing Categories As Strategic Business Units,
Producing Enhanced Business Results
By Focusing On Delivering Consumer Value”
Consumer
Manufacturer
Retailer
Category Management is …
• A business planning process
• Consists of key elements
– Manage the category with a consumer focus
– Manage the category as strategic business unit
– Develop strategic category plans based on mutual
category goals and consumer behavior
– Collaborate between retailers and manufacturers to
achieve desired profit objectives
– Increased focus on Consumer….
Page 13
Category Plan Basics
CMA / DeCA Working on Structure & Process
Best Practice Category Management Business Process- Most Retailers Using A
Process – Less important the number of steps all now with a focus on the consumer
What
products are
included?
What are the
subcategories?
Category
Definition
How
important is
the category
to the
consumers?
To the
retailer?
Category
Role
Who buys the
category?
What are the
goals and
objectives?
How is the
Category
doing?
How will we
achieve our
goals?
What are the
elements of
the plan for
each subcategory or
segment?
Category
Strategy
Category
Tactics
How shall we
measure
success?
Category
Assessment
Category
Scorecard
Category Review
Examine the Scorecard
Who does
what and
when?
Plan
Implementation
Voice of Shopper
Who
• WHO are our shoppers?
What
• WHAT are they buying?
Why
• WHY are they buying?
Where
• WHERE are they buying?
When
• WHEN are they buying?
How
Other Resource
• HOW are we influencing them to buy?
• Links to additional sources of information.
CMA / DeCA Collaboration
• Determine how vendors can best help DeCA?
• Assortment?
• Consumer Decision Tree
• Clustering?
• Shopper and need state marketing?
• Category Management planning?
• What Systems and Technologies are needed?
Category Tactics
16
How Will CatMan Excellence Help DeCA?
•
DeCA will strengthen its position as retailer of choice for
your target consumers.
•
DeCA will become more competitive versus major
conventional retailers
• Performance against major scorecard goals will improve
–
–
–
–
–
Shopper satisfaction measures will improve
GMROI will improve
Transaction size will increase
Margins will increase
Shelf sets will become easier to shop
CMA will help DeCA Be Your Customer’s” First Choice”
17
What Does DeCA Expect from Suppliers?
• A knowledgeable Account Team or Rep
• Organization Commitment from Suppliers
• Armed with relevant data and research
• Providing Key Facts and Shopper Insights
• Offering “ Success Models”
• Persuasive justification for new items
18
DeCA first questions to
Sales & CATMAN Teams
• Please tell me the five most important facts or
insights that I should know to plan our business
together?
• Please tell me the most important changes that
have occurred in your category since we last talked?
19
Retailers Focus on Answers to the
Really Big Questions:
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Report Executive Briefing
• Category Management Industry Survey
conducted by The Partnering Group (TPG)
in conjunction) CMA
CATEGORY
MANAGEMENT
• Research Objectives & Methodology
• Review of the Key Findings
• What Leading Companies are Doing
2013
INDUST RY
REPORT
©
© 2013
2013
The
The Partnering
Partnering Group,
Group, Inc.
Inc.
Category Management Association
Skills & Competencies
Perspective
Compentency
Category Analysis & Insights
Problem Solving
Business Planning
Consumer and Shopper Analysis & Insights
Communication
Channel & Customer Knowledge
Space Merchandising
Assortment
Collaboration
Technology/Tools
Relationship Development
Financial & Business Acumen
Negotiating Skills
Promotions
Pricing
Project Management
Shopper Marketing/Target Marketing
Presentation Skills
Relevancy Rank
Retailer Supplier
1
1
2
6
3
11
4
10
5
8
6
4
7
7
8
5
9
3
10
9
11
12
12
13
13
17
14
15
15
16
16
14
17
18
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2
These differences may account for some of the disconnects
in the supplier-retailer relationships
CMA working with DeCa Leadership Team
on Category Management Structure & Process
Providing Key Metrics for Success
Competency
defines the
characteristics
(knowledge, skills,
abilities)
required to enable
success in
performing a specific
area of work
Thought Leadership
Category Mastery
3 Trends Affecting Cat Man
• The growing power of the retailer
• The (digital) empowerment of the shopper
• The impact of big data
CatMan Maturity Curve
Data
Analytics
&
Software
Org.
Skills
Process
&
Culture
Maturity Curve Components
Collaboration
E
www.youtube.com/watch?v=7JQ0vgnzvpM
How do you refer to category
management in your company?
Multiple Forms
Category management is … “a platform”
Supports all participants – a site for communication and the
integration of information and divergent perspectives
• Knowledge platform
• Relationship platform
• Process platform
• Communication platform
Category management is … “a funnel”
Category management synthesizes information and knowledge
within, and across organizations
• Information from data,
Supplier
• Insights from information
Retailer
Data
• Direction from insights
Category management is … “a wheel hub”
Enables business performance of each partner and facilitates
interaction among partners - and particularly amongst functions
within a single organization.
Collaboration has two meanings relating
to category management
Shared
View
Shopper
Focus
Harmonization
Collaboration
Integration of
Knowledge
Trust
Barometer
Multifaceted
Leadership
Pre-planning
Multifunctional/
Multilevel
Collaboration Research Harminization
Meaning…
• The ability for manufacturers and retailers
identifying common value or return to working
effectively as a team toward a common goal
• The prerequisites for team success are:
• Respect
• The willingness to share information
• Strong analytical skills
• The ability to create insight
• The capability to direct and take decisive action
A “barometer“ of success…
Great teamwork indicates confidence in partners and
when found always relates to relationship quality
• Consider that partner reliance is almost
always tied to planning and execution success
• Good relationships are easily understood
The Category Management Association
Certification Program For DeCA
What is certification?
• Certification can be attributed to people and training
– Certification of individuals
• Is an objective, third-party designation of professional standing
• Is competency based and based on an individual’s experience and training minimum
– Certification of a company’s training program means that the
program imparts the necessary competencies to perform category
management at designated industry professional standards
37www.cpgcatnet.org
Category Management Association
Some of The Organizations Involved In
The Development and Vetting Process
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Category Management Standards
Individual Certification:
• Quantifies the skill level of individual
category management professionals
• Ensures the standard has been met or exceeded
Coursework Certification:
• Designated course officially fulfills a
requirement towards individual professional
certification.
Certification Scorecard
Simplistic approach
• 3 levels
• required fundamentals
• plus recommended skills
Adaptable
• flexible for companies,
big and small
• will improve over time
40
Personal Certification Report
3 Certification Levels
42
CMA Online
Certification Process
For DeCA Associates &
Supplier Community
Individuals
44
Learning Programs & Essay Questions:
“Roadmaps” for unachieved levels:
John Doe
John Doe
John
Doe
Certified Training Providers
DeCA – Primary Company Learning Evolution
47
Certification has
the following specific benefits:
• Industry leadership
• Competitive advantage
• Sustainability - Employee Value Proposition (EVP):
• Clear message to DeCA employees that you are investing in
their success
• Provides employees with a specific roadmap for
professional growth and development
• Enhance employee morale, retention via professional
development
• Talent expansion and preparation
• Mutually Beneficial for DeCA and Supplier Community
48
Costs for an Individual’s
Certification
• Initial costs $895.00 – Note Only $805.50 if CMA Member
• Active Status Costs:
o Renewal for an individual’s certification after year 1 is $100.00
annually
o Includes:
• New training programs completed
• Maintaining certification records
• Updating certification level
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Six areas of improvement Future of
Catman
2.0
Release
Based on a review of the major changes in the ecosystem and a consensus
of practitioners, here are the primary areas of focus to upgrade CatMan 1.0
to CatMan 2.0
•
Improving internal preparation
•
Defining collaborative behaviors
•
Incorporating new data to generate insights
•
Defining the assessment pathway and tools
•
Incorporating social media and shopper marketing
•
Enhancing execution
These need confirmation from the CatMan 2.0 development committee
Steering Committee Stakeholders
• Category Management Association--leadership
• Retailers—cross channel
• Suppliers—CPG and beyond
• Distributors—cross channel
• Brokers
• Solution Providers
• Training Companies
• Academics
Leading edge companies deliver a compelling ROI
3 sustainable Cat Man competitive points of difference:
1. Establishing a category management vision and a roadmap
2. Developing & deploying category management business processes
with an infrastructure to support it
3. Determining key competencies and developing those skills in their
employees to enable their success
Organizing Big Data for Insights
Other Retail
Behavior
Inputs
Filters
Retail
Loyalty
Card
Social
Media
Media
Consumption
Lifestyle
Behaviors
Household Behavior Filter
Need States Filter
Analytics
Outputs
Insight Generation
Need States Category
Price
Forecasting
Insights
Insights Optimization
Digitally Empowered Shopper
Data
Product Data
•
•
•
•
•
Product Details
Price
Inventory
Product Location
Store Map
Retailer
Targeted Offers
(traditional channels)
• Basket History
• Loyalty Card
• Demographic Data
Shopper Data
Premium Data
Nutrition
Eco-index
Recipes
Ratings & Reviews
Comparisons
Related Products
Shopper
Intent Driven
Targeted Offers
•
•
•
•
•
•
•
•
•
•
•
In-Store Actions & Habits
Responsiveness to Offers
Lists & List History
In-Store Searches & Scans
Shopper Location & Shopping Patterns
Digital
Platform
Category Management
The Future Questions
•
•
•
Do you have the right data?
Do you have the right data storage?
Can you do on the fly analytics?
•
•
Do you have the right people?
Are you Rewarding and Recognizing them?
•
•
Are you developing the skills of your people?
Are you pushing the envelope on their needs?
Can Universities Serve as a Source of
Category Management Talent?
The State Of Category
Management Education
The standard approach to developing category
management talent on college campuses has been
accomplished by:
•
Instructing students in food marketing or retailing, and
offering them a single course in category management
•
Having companies or partners present in-class subject lectures
•
Limited internships are offered
•
Students receive less than 30-45 hours of total category
management instruction
Universities Teaching
Category Management & Sales
• University of Arkansas
• University of St. Catherine
• Baylor University
• St. Joseph University
• DePaul University
• University of South Carolina
• Florida State University
• Northwestern University
• Georgia Tech University
• University of Tennessee
• University of Miami
• University of Texas
• Michigan State University
• Texas Tech University
• Western Michigan
University
58
DePaul University
Consumer Packaged Goods Track
EFFECTIVE BUSINESS
COMMUNICATIONS
FUNDAMENTALS OF SALES &
NETWORKING
SCIENCE OF
RETAILING
ADVANCED VALUATIONS FOR
BUSINESS
PRINCIPLES OF CATEGORY
MGMT
CASES IN
CATEGORY MGMT
Retail Grocery
&
Foodservice
Center for Sales Leadership | DePaul University
DePaul Category Management Partners
Conclusion
•We believe the future success in retail will be driven
through effective collaboration:
– Effective communication between cat man partners
– Effective integration of shopper insights
– Significant investment in personal growth and development
Key Contacts
Category Management Association,
210.587.7203 Central time USA
For more information on member benefits and options, visit
www.cpgcatnet.org or email: memberservices@cpgcatnet.org
To learn more about individual or company certification, email:
admin@certifications.cpgcatnet.org
Blaine Ross, Executive Vice President Global Sales & Marketing, bross@cpgcatnet.org
Philip McGrath, Vice President Business Development, pmcgrath@cpgcatnet.org
Steve Arens, Director Strategic Alliances, ,sarens@cpgcatnet.org
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THANK YOU!