1、Category ManagementUnderstanding the consumer as key to success Dionisio Seissus GarcaAna Cludia Fioratti ESOMAR,Mxico October 2019glzl8Consumer PanelMethodologyContinuous Research that has the main objective to understand the same group of households,the spontaneous purchase behavior of consumers.D
2、iary Purchases of more than 70 mass consumption categories(Food,Household Cleaning,Personal Care and Non Alcoholic Beverages)Latin American CoverageCoverage:14 CountriesSample:25,000 HouseHoldsCategory Management AnalysisOpportunities for manufactures and retailers permiting to:Identify the customer
3、s of a Chain A,evaluating in which other channels of distribution and supermarket chains they also do their purchases Know the buyers loyalty level of a Chain A,searching for possible categories or product portfolios mixed business opportunities Quantify the“lost business”of Chain A:Who the real com
4、petitor is at the consumer moment of deciding to purchase?How much could be gained in sales,when a concrete marketing strategy is developed to recover the lost expense?Benefits of the tools presentedPhases of Category Management10 million100 million40 millionCategory Volume of the Chain:Chains marke
5、t shareCategory Volume in all channels of distributionCategory Volume made by the chainscustomers 10 millionOnly a small proportion of the Chains consumers,buy the category at the same chainAssessment of the Chains Sales Volume1.Know the business volume,the chainss market share,and the customers of
6、the especific chain7525LoyaltyLost ExpensesThe loyalty is 25%then total potential is 30 million.Loyalty of the Chains Sales Volume2.Measure chain loyalty in determined category and the expense competitors lossWhich chains and channels of distribution are the“receivers”of Consumers Chain X lost expen
7、ses?51015202030Chain AChain BChain CChain DChain E OthersAssessment of the lost expenses of Chain X(%)3.Expense analysis7525LoyaltyLost ExpensesWhere does the Chain X stand at the moment?What should we focus on to attract more customers or keep the loyal current one?HIGH POTENTIALLOW POTENTIALMany c
8、ategory buyers,who buy elsewhere.Few category buyers,who buy elsewhere.Many category buyers,buying at Chain XFew category buyers,who however buy at Chain X.OPPORTUNITIESSTRENGTHSWEAKNESSPROFIT/GAINSLOW LOYALTYHIGH LOYALTY4.Know the chain and competitors positioningMarket Potencial Evaluation5.Measur
9、e the main factors which generate lossesIt establishes whether theses losses are the results of sensitivity to prices,promotions and advertising activities,etc.This analysis is based on time periods that have shown significant changes in the chain market share,when evaluating ones chain actions and
10、competitors.6.Know different customer gruops in the chain(targets)As the market is increasingly competitive it is clearly important to identify the customer groups which are contributing negatively for the chains results and focus ones aim on these specific consumers,attracting and making them loyal
11、.7.Make the correct decisions to keep and improve the chain market share,and work more closely with manufacturers to enhance better sales and profit results.The Latin American Consumer:Comparing the Argentinean,Brazilian And Chilean Analysis Through the Consumer Panel information,the Category Manage
12、ment methodology is analized for:Hair Care Category(Shampoo and Hair Conditioners)In Argentina,Brazil and Chile in a specific Chain,mentioned:Chain ADuring the period between July 2019 and June 2019 Sample:11,100 householdsRelative importance of Personal Care between 9%-10%of the FMCG totalHair Care
13、 represent between 2%-3%of the total,being of great relative importance in ChileDifferent market share of Shampoo in Hair Care per Country:Brazil 46%;Argentina 35%and Chile 29%ARGENTINABRAZILCHILETOTAL FMCG100,0100,0100,0FOODS AND HOUSEHOLDCLEANERS90,591,390,3PERSONAL CARE9,58,79,7 HAIR CARE2,62,43,
14、1 SHAMPOO1,71,32,2 HAIR CONDITIONERS0,91,10,9 OTHERS PERS.CARE6,96,36,61.General DiagnosisShare of Market:FMCG,Personal Care and Hair Care(%Value)Argentina shows a smaller market share for Supermarkets Brazil and in Chile more than 60%of purchases are done by this channel 386265432513321010652107ARG
15、ENTINABRAZILCHILE OTHERS DOOR TO DOOR DRUGSTORES TRADITIONAL TRADE SUPERMARKETS1.General DiagnosisShare of Market Distribuition Channels FMCG(%Value)Great participation of pharmacies/drugstores,direct Sales and door to door channel in all countries 416362291261671458106148ARGENTINABRAZILCHILE OTHERS
16、 DOOR TO DOOR DRUGSTORES TRADITIONAL TRADE SUPERMARKETS1.General DiagnosisShare of Market Distribuition Channels Personal Care(%Value)A third part of purchases in these categories occurs out of the supermarket channel In Argentina the importance of Traditional Channel is considerably high 3959632911
17、519121468731512ARGENTINABRAZILCHILE OTHERS DOOR TO DOOR DRUGSTORES TRADITIONAL TRADE SUPERMARKETSShare of Market Distribuition Channels Hair Care(%Value)1.General DiagnosisConsumers buy Hair Care in Chain A:42%in Argentina27%in Brazil51%in Chile24141026197211011Buyer Chain A and BoughtHair CareBuyer
18、 Chain A and BoughtHair Care but not in ChainABought Hair Care in ChainAARGENTINABRASILCHILE2.Importance of Buyers at Chain A and Hair Care(%)ARGENTINA71%24%5%EXPENSES IN HAIR CARE NONBUYERS CHAIN AEXPENSES IN HAIR CARE BUYERSCHAIN A OUT CHAIN AEXPENSES IN HAIR CARE BUYERSCHAIN A IN CHAIN A3.Lost Ex
19、penses and Loyalty Buyers of Chain ABRAZIL71%26%3%CHILE74%19%7%Loyalty in Hair Care buyers of Chain A:17%in Argentina10%in Brasil27%in ChileTraditional Channel and Pharmacies/Drugstores represent almost 50%of lost expense in Hair Care.The most important supermarket competitor is Chain B,with only 8%
20、of total expense 7%19%5%6%8%24%25%83%17%Buyers Chain A:Expense in HairCareShare of Lost ExpenseLoyaltyLost ExpensesTRADITIONAL TRADEDRUGSTORESCHAIN BDOOR TO DOORCHAIN CCHAIN DCHAIN EOTHER SUPERMARKETSOTHER CHANNELS4.Lost Expenses in Hair Care Buyers of Chain AArgentina31%of the lost expenses is out
21、of Supermarkets;Pharmacies/Drugstores,Department stores and door-to-door channels 4.Lost Expenses in Hair Care Buyers of Chain ABrasil8%4%48%7%8%17%90%10%6%Buyers Chain A:Expense inHair CareShare of Lost ExpenseLoyaltyLost ExpensesDRUGSTORESDEPARTMENT STORESDOOR TO DOORCHAIN BCHAIN COTHER SUPERMARKE
22、TSTRADITIONAL TRADEOTHER CHANNELSCompetition is among different supermarkets chains.34%of lost expense come from Chain B 4.Lost Expenses in Hair Care Buyers of Chain AChile24%4%12%4%17%34%73%27%Buyers Chain A:Expense inHair CareShare of Lost ExpenseLoyaltyLost ExpensesCHAIN BDRUGSTORESCHAIN CCHAIN D
23、OTHER SUPERMARKETSTRADITIONAL TRADEDOOR TO DOOROTHER CHANNELSThe Chain A is placed with a few buyers of Hair Care,but the supply happens inside the chain.Good relative loyalty 5.Chain and Channels Positioning of Hair Cares Market Potential and Loyalty Evaluation Argentina-1,0-0,50,00,51,01,5-1,0-0,5
24、0,00,51,01,52,02,53,0X=Relative LoyaltyY=Relative PotentialCHAIN ACHAIN BCHAIN CCHAIN DCHAIN ETRADITIONAL TRADE DRUGSTORESDOOR TO DOORSTRENGTHSPROFIT/GAINSOPPORTUNITIESWEAKNESSLow loyalty and low potential,Hair Care purchase is done out of Chain A 5.Chain and Channels Positioning of Hair Cares Marke
25、t Potential and Loyalty EvaluationBrasil-1,0-0,50,00,51,01,5-1,0-0,50,00,51,01,52,02,53,0X=Relative LoyaltyY=Relative PotentialCHAIN ACHAIN BCHAIN COTHER SUPERMARKETSTRADITIONAL TRADEDOOR TO DOORDRUGSTORESDEPARTMENT STORESSTRENGTHSPROFIT/GAINSOPPORTUNITIESWEAKNESSSimilar position of Argentina,but mu
26、ch closer in potential with their main competitors Chain B and Other Supermarkets5.Chain and Channels Positioning of Hair Cares Market Potential and Loyalty EvaluationChileSTRENGTHSPROFIT/GAINSOPPORTUNITIESWEAKNESS-1,0-0,50,00,51,01,5-1,0-0,50,00,51,01,52,02,53,0X=Relative LoyaltyY=Relative Potentia
27、lCHAIN ACHAIN BCHAIN CCHAIN DOTHER SUPERMARKETSTRADITIONAL TRADE DRUGSTORESDOOR TO DOOR 6.Lost Expenses Distribution of Chain A among Hair Cares buyers and non buyers ARGENTINA55%45%Lost expense buyers bought HairCare in Chain ALost expense buyers Chain A notbought Hair Care in Chain ABRAZIL76%24%Br
28、azil opportunity in buyer of Chain A and non buyer Hair Care which concentrate 76%of lost expense is 19,1%of households CHILE52%48%7.Social Economic,demographic Profile and Life Style of Chain A buyers Argentina Greater concentration of middle class peopleHousewifes who bought Hair Care in the chain
29、 are younger than those who didnt buyMost households didnt buy Hair Care in the chain without children020406080100High LevelMedium LevelLow HigherLow DownUntill 49 years oldMore 49 years oldWith ChildrenWithout ChildrenIndifferentsHunters of QualityHunters of PriceBalancedsHunters of BrandNot intere
30、sted in BrandsBuyer Chain A but not bougth Hair Care in this supermarketBuyer Chain A and bougth Hair Care in this supermarket7.Social Economic,demographic Profile and Life Style of Chain A buyers BrazilBuyer not bought Hair Care in Chain A:Higher Low LevelHouseholds without children020406080100High
31、 LevelMedium LevelLow LevelUntill 49 years oldMore 49 years oldWith ChildrenWithout ChildrenIndifferentsHunters of QualityHunters of PriceBalancedsHunters of BrandBuyer Chain A but not bougth Hair Care in this supermarketBuyer Chain A and bougth Hair Care in this supermarketTwo different groups of b
32、uyers:Buyers not bought Hair Care in Chain A:lower social-economic lever,older housewives,with children,housewives seeking for balanced between quality and priceBuyers bought Hair Care in Chain A:higher social-economic lever,younger housewives,indifferent purchase style7.Social Economic,demographic
33、Profile and Life Style of Chain A buyers Chile020406080100High LevelMedium-highMedium-lowLow LevelUntill 49 years oldMore 49 years oldWith ChildrenWithout ChildrenIndifferentsHunters of QualityHunters of PriceBalancedsBuyer Chain A but not bougth Hair Care in this supermarketBuyer Chain A and bougth Hair Care in this supermarketObjectiveContinuousComparative Results(periods and countries)Microanalysis(one category)and Macroanalysis (group of categories)EasyAdvantages of Category Managementfrom Consumer Panel
