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CATEGORY MANAGEMENT Session Objectives: ? Define Category Management (CM) ? Describe Category Management as a Business Process ? Discuss Critical Issues Related to Successfully Developing a Category Management System Category Management Process Category Management Issues Define Category Management Definition Bringing Better Value to the Consumer is the Primary Focus of Category Management. “ A RetailerSupplier process of managing categories as Strategic Business Units, producing improved sales and profit results by focusing on satisfying consumer needs and delivering consumer value.” Source: ECR Best Practices Report Category Management has expanding into durable goods and services. Is Category Management just for the grocer? ? Durable Goods ? Auto Industry GM Pontiac Ford ? Service Industry ? Phone Service ? Financial Services/Banks Definition The ECR System Timely, accurate, paperless information flow Supplier Distributor Retail Store Consumer Household Smooth, continual product flow matched to consumption Definition Efficient Promotion Efficient Store Assortment Definition Category Management is at the at the core of ECR. CM provides a process framework for collaboration. Efficient New Product Development Efficient Replenishment CATEGORY MANAGEMENT Category Management as a Business Process is prised of interrelated ponents both within and outside of the anization. What is Category Management? Definition Information Technology Strategy Business Process Scorecard Collaborative Relationships Organization Capabilities Core Enablers Enablers CATEGORY MANAGEMENT: HOW IS IT DIFFERENT? ? Category/Brand/SKU Management under one Decision Maker ? ConsumerFocused Strategies ? Databased Decision Making ? Proactive Business Planning ? Collaborative Work Process ? Manage Category As Business Unit ? Focused on Category ROI NOT Sales or Gross Margin Definition SKILLS NEEDED TO BUILD BUSINESS THROUGH CATEGORY MANAGEMENT ? Data analysis and technical mastery ? Shopper and consumer understanding ? Strategy development ? Financial and logistics expertise ? Innovation ? Total Systems Focus Definition Definition Why is it beneficial for Retailers and Manufacturer