Category Strategy
Category Management has been a force in relationships between manufacturers and retailers since introduced by our partners, TPG, in the US. Originally a concept designed to build long term strategies for categories as business units, focussed on shopper needs, it now is a key component of effective customer management for most global CPG manufacturers, and becoming a core business planning tool for best in class players.
Our strategy work in this area helps both manufacturer and retailer develop a coherent strategic plan for a category that underpins partnership and long term thinking.
We use TPG's best practice process as set out below as the core thinking, but in particular focus on the development of robust, quantified strategies based on understanding undermet and unmet consumer and shopper needs.
8 Step Process
Working with cross functional sales and marketing teams, our consultants use a robust planning process based on 16 core business questions that drive out the key performance issues in any category, and based on this insight we develop a compelling agenda for improved category performance. Our focus throughout is in identifying desired shopper behaviour changes.
We have developed a range of category focussed insight tools, including category needs mapping, adjacency analysis and Category Decision Point (TM) to understand the hierarchies of decisions. We understand which research is most needed to deliver effective strategies.
Strategy Wheel
This strategy agenda then drives plans in each key area of the business:
- Brand Strategies that deliver the category needs
- Innovation to exploit category "gaps"
- Range planning
- Point of purchase initiatives in Point of Sales and/or merchandising layouts
- Pricing Strategy
- Effective promotion strategy
Typical Category Strategy Process
