1、Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeCategory Management Case StudyBased on ECR Taiwan Category Management Pilot ProjectModern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeCase Study AgendaObjectives of the Case Study Category Ma
2、nagement ModelWork through the Cat Man Process,(Scorecard&Tactics)Write a Category PlanModern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeObjectives of the Case StudyUnderstand the Category Management Model.Understand the linkage between the Steps in the Model by working
3、 through Cat Man Process.Understand Practical Application of Category Management by Agreeing a Category Plan.Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeThis Case StudyIs the International Process.Is based on real SKUs and market,but Data detail is changed for con
4、fidentiality.Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeShelvingRoleDefinitionAssesmentScorecardStrategiesTacticsImplementation ReviewAssortmentPricingPromotionInternational Category Management ModelModern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 R
5、ef:A.P.LangridgeHandout Material-Pages 3&4Category DefinitionCategory Role(These are generally agreed by Supplier&Retailer management in advance.)Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgePretreaterCleanserFabricsCareFabrics CleanserFabrics-ConditionerBleachMain
6、 WashDelicate WashRinse SoftenerIroningAidsNormalColorConventionalConcentrateHeavy Duty LiquidLight Duty LiquidCategory Definition&StructureFabric CareModern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeFabricsCareFabrics CleanserFabrics-ConditionerBleachPretreaterMain Wa
7、shDelicate WashRinse SoftenerIroningAidsNormalColorCleanserConventionalConcentrateHeavy Duty LiquidLight Duty LiquidCase Study Focus-Fabrics ConcentrateModern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeSignature/DestinationPriority Basic/RoutineOccasional/SeasonalFill-i
8、n/ConvenienceCategory Role?Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeThe Category is Priority because of its importance to Sales and Profit,plus its competitive importance.Signature/DestinationPriority Basic/RoutineOccasional/SeasonalFill-in/ConvenienceCategory
9、RoleModern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeMost Categories are Basic or Priority.Very few are Signature because of the high investment cost to maintain that position.(See Page 4 for a detailed description of“priority”).10%25%50%5%10%Signature/DestinationPrior
10、ity Basic/RoutineOccasional/SeasonalFill-in/ConvenienceCategory RoleModern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeCategory AssessmentWhat is the current performance of the Category and Segments?How does the performance compare to the Market?What are the Opportunitie
11、s for Improvement?Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeTotal CategoryLast YearThis YearNext YearShare PointGapMarket Sales744977027802.0Growth3.40%0.13%Retailer Sales428.3385.1Retailer Share5.75%5.0%Retailer Fair Share5.3%0.3Cash Profit34.335.0%Margin8.01%9
12、.09%Loss of ShareWorse than TotalRetailer SalesProfit MaintainedCategory Assessment(Page 5)Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeSales;Fair Share=5.3%Sub-CatLast YearThis YearMarket SharePointGapOpportunityGap($)(000,000s)MktRetMktRetLYTYConcentrate2156140.3
13、2242116.46.51%5.19%0.112.426Conventional190497.8198190.15.14%4.55%0.7514.893HDL163965.7173762.84.01%3.62%1.6829.261Softener56126.159426.44.71%4.44%0.865.082LDL48023.343221.94.85%5.07%0.230.996Soap21229.120625.813.7%12.5%(7.20)(14.882)Pre-Treat10315.310811.014.8%10.2%(4.90)(5.276)Bleach39430.740230.7
14、7.79%7.64%(2.34)(9.394)TOTAL7449428.37702385.15.75%5.00%0.3023.106Excluding Declines,Growth Opportunity=13.67%$52.658mUnder-performing SegmentsCategory Segment Assessment(Sales)Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeProfit;Average Dept Margin=10%Sub-CatLast Y
15、earThis YearPoint Gap&Opportunity Gap($)(000s)CashMgnCashMgnConcentrate4924.03.51%4900.04.21%Conventional4498.94.60%4460.04.95%HDL10183.515.50%10747.517.11%Softener2375.19.10%2482.59.40%Point Gap=0.91Opp Gap=$3,512LDL2702.811.60%3017.513.78%Soap4161.314.30%4182.516.21%Pre-Treat2356.215.40%1832.516.6
16、6%Bleach3106.810.12%3375.010.99%TOTAL34308.68.01%34997.59.09%Excluding Declines,MarginImprovement Opportunity$11,447Clear Opportunities for ImprovementCategory Segment Assessment(Profit)Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeRetailer Share vs Market GrowthRet
17、ailer ShareMarket GrowthWinners(HH)Sleepers(HL)Opportunity Gaps (LH)Questionable(LL)Size of Bubble equals Size of SegmentOnly one clear“Winner”segment,(and its small).Category Assessment(Retailer Performance in Market)Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeRe
18、tailer Share vs Market GrowthRetailer ShareMarket Growthbut,Clear opportunities to Increase Sales!Opportunity Gaps (LH)Winners(HH)Sleepers(HL)Questionable(LL)Category Assessment(Four Largest Segments)Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeCategory ScorecardWh
19、at are the overall“Top Line”targets for the Category?These must be discussed and agreed with the Senior Management.Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeObjective:Regain Market Share and Maintain Cash Profitability.Total CategoryLast YearThis YearNext YearSh
20、are PointGapMarket Sales744977027802.0Growth3.40%0.13%Retailer Sales428.3385.1Retailer Share5.75%5.0%Retailer Fair Share5.3%0.3Cash Profit34.335.0%Margin8.01%9.09%$448.6m5.3%$35.0m7.8%This is 16.5%growth,but this Retailer wantsGrowth&Market Share.Overall Management Goal for the CategoryCategory Scor
21、ecard(Page 8)Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeRepeat the exercise for each Segment.ConcentrateLast YearThis YearNext YearShare PointGapMarket Sales215622422264Growth3.99%0.98%Retailer Sales140.3116.4Retailer Share6.51%5.19%Retailer Fair Share5.3%0.11Cas
22、h Profit4.9244.900%Margin3.51%4.21%$120.0m5.3%$4.9m4.1%Should we try and retain share in Segments with more than“Fair Share”?DEFINITELY YES!But not at the expense of Margin!Segment Scorecard(Page 9)Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeCategory Strategies(Pa
23、ge 11)We assign different Strategies to each Segment to ensure we have a balanced Business Plan.StrategyDefinitionTraffic BuildingFocuses on drawing consumer traffic to the store and/or into thecategory and aisle.Transaction BuildingFocus on increasing the size of the average transaction in thecateg
24、ory,aisle or total store.Cash GenerationFocus using parts of the category to generate cash flow for theretailer.Profit GenerationFocus on using parts of the category to generate above categoryaverage profits.Turf DefendingAggressively use parts of the category to protect the retailersbusiness in the
25、 category from targeted competitors.Excitement CreationUse to communicate a sense of urgency or opportunity to theconsumer.Image EnhancementUse in a category to help the retailer communicate its desiredimage to the consumer in one or more of the following areas;Price,Service,Quality,Variety.Modern T
26、radeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeCategory Strategies(Page 11)We use a different mix of Strategies,for each Category Role.Category RolesStrategyMatrixDestinationPriorityBasicSeasonalConvenienceTrafficBuildingXXXTransactionBuildingXXXXCashGenerationXProfitGenerat
27、ionXXXXTurfDefendingXExcitementCreationXXCategory StrategiesImageEnhancementXBalanced Profit.Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeAssign Strategies to Segments.(Page 12)Category SegmentStrategiesConcentrateTraffic BuildingConventionalTransaction BuildingHDL
28、Cash GenerationSoftenerTransaction BuildingLDLProfit GenerationSoapProfit GenerationPre-TreatTransaction BuildingBleachProfit GenerationSegments with high shares are used for Profit Generation.High Unit price and“Related Sale”segments are used for Transaction Building.Modern TradeAcademy Unilever Mo
29、dern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeCategory Tactics.Based on the Role,Scorecard and the Strategies,we now confirm the Tactics to use in each area;nRangingnPricingnPromotionnShelvingModern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeRoleRanging TacticsDestin
30、ationComplete Range:Widest in the market,everything the consumerwould expect to find is available,plus some additional items.All sub-categories,segments,brands and SKUs represented.PriorityBroad Range:At least as wide as the competitor,with someadditional items.All sub-categories,segments and brands
31、represented.BasicBasic Range:Competitive width,the majority of items theconsumer would expect is available.All sub-categories,MajorBrands and Major SKUs represented.SeasonalTimely Range:All sub-categories and Segments represented.ConvenienceSelect Range:Major Brands and SKUs only.Ranging TacticsAs a
32、 PRIORITY Category,we should stock a BROAD RANGE of SKUs.Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeRolePricing TacticsDestinationAggressive Value leadership in the market.Must offer the bestvalue,per pack,for the whole category.PriorityStrongly Competitive prici
33、ng.Must offer best value compared tocompetitors,(per pack),for all major components of the category.Equal with competitor for minor components.BasicCompetitive pricing.Should be equal to competitors,(per pack),forall major components of the category.Minor components at apremium.SeasonalCompetitive,s
34、easonally.Should be close to competitor in somecomponents of the category.ConvenienceAcceptable pricing.Should be within 15%of the competition,(perpack).Pricing TacticsAs a PRIORITY Category,we should adopt STRONGLY COMPETITIVE pricing.Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 R
35、ef:A.P.LangridgeRoleShelving TacticsDestinationBest Store location;high traffic flow,high time exposure,HighSpace Allocation.PriorityQuality Store location;Medium traffic flow,Average to High SpaceAllocationBasicAverage Store location;Average traffic flow,Average to MinimumSpace AllocationSeasonalGo
36、od Store location;high traffic flow,Average Space Allocation.ConvenienceAvailable location;Low Space Allocation.Shelving TacticsAs a PRIORITY Category,we should adopt QUALITY location,with a slightly higher than average space allocation.Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001
37、Ref:A.P.LangridgeRolePromotion TacticsDestinationAggressive;High level of Activity,High Frequency,VariablePromotion Types,Customised promotions for the Category.PriorityBuild:High level of Activity,High Frequency,Variable PromotionTypes,Customised promotions for Major Brands and SKUs.BasicMaintain;A
38、verage level of Activity,Average Frequency,Regularpromotion types.SeasonalSeasonal Promotion Activity.Customised promotions for thecategory.ConvenienceLow level of Activity.Promotion TacticsAs a PRIORITY Category,we should BUILD sales volumes,using Major Brands and SKUs.Modern TradeAcademy Unilever
39、Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeStrategic SummaryPage 15 in the handout summarises what is agreed so far.This is the Blueprint for managing the Category.This is the reference for ALL actions and decisions as we work through the operational detail of the Plan.Modern TradeAcademy Un
40、ilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeSegment Ranging Review(Concentrates)Page 16 details the SKUs available in the market,what is stocked in the Retailers channel,the Retailer,and his Competitors.Note that Competitor 1 has 19 SKUs.Is this too broad?How much of the market is cove
41、red by the existing 14 SKUs?Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeSegment Ranging Review(Concentrates)Page 17 ranks the SKUs by sales share for comparison between the Retailer and the Market average.Note that 15 SKUs covers 95%of the market.3 SKUs,(9,11,&12)
42、are not stocked.The retailer lowest 2 SKUs are poor performers in the market.Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeRanging RecommendationRanging Recommendation and ImpactSKUShareSegmentSizeRetailer FairShareImpactAdditions;2,242m5.3%2,242m5.3%2,242m5.3%SKUSh
43、areSegment SizeImpactDeletions;116.4m116.4m116.4mTotal Sales Impact;Wulin 1.2k PrimaryLanPao Con 2KgColor Care Con 1.2k Primary2.6%1.6%1.5%+3.09m+1.90m+1.78mWulin Con 1 Kg RefillTide Con.39oz/42oz0.4%0.1%(0.47m)(0.11m)+6.19mAdditional Annual Sales of$6.19m,5.3%increase on this year,5.46%Market Share
44、Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeSegment Promotion Review(Frequency)Page 18 details the Promotion Frequency,Type and Price Point for the Retailer and his Competitors.Summary;RetailerComp.1Comp.2Total No.of Promos262122Mix,(std vs.Deep).85%33%55%Note the
45、 difference in Frequency and MixModern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeSummary;RetailerComp.1Comp.2ProposedTotal No.of Promos26212222Mix,(std vs.Deep).85%33%55%50%Brand Promotion Mix.PromoShareMktSharePromoSharePromoShareStd11Deep11Total22ShareAttack15%34%24%
46、23%Attack Liang Tsai15%20%24%23%Ultra15%20%9%23%Chi Uei-1%9%-Colour Care15%7%9%14%Jet Best8%2%-Lan Pao-2%5%-Lion-9%-Tide15%1%-Wulin15%8%9%18%Promotion Frequency4 4 8 36%2 2 4 18%2 2 4 18%-1 1 2 9%-1 1 5%1 -1 5%-1 1 2 9%There is no“perfect”answer!Clearly the“mix”needs adjusting to be competitive.Alig
47、ning Brand Frequency to market share is a good start!Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgeStdRatioDeepRatioATTACK LIANG TSAI 1.2 KG CONC99111NcATTACK LIANG TSAI 2 KG CONC125105ATTACK SUPER CON.1.2 KG99111NcATTACK SUPER CON.2 KG125105B.C.S.ULTRA CON.1 KG REF
48、ILL89-B.C.S.ULTRA CON.1.2 KG PRIMB.C.S.ULTRA CON.2.7 KG REFILL169106NcCHI UEI CON.1.25 KGCHI UEI CON.1.5 KGNcCOLOR CARE CON.1 KG REFILL89-COLOR CARE CON.1.2 KG PRIMCOLOR CARE CON.2.7 KG REFILL169106NcJET BEST CONCENTRATE 1.5 KG109-JET BEST CONCENTRATE 2 KGLANPAO 3 IN 1(1.25 KG)LANPAO CON.2 KGNcLION
49、CON.2 KGNcTIDE CON.39OZ/42OZ169-TIDE CON.92OZ/2.6KG399-WULIN CON 1 KG REFILL79-WULIN CON 1.2 KG PRIMARYNcWULIN CON 2.7 KG REFILL159107NcSegment Promotion Review(Price Point)Almost all promotion price points are higherthan the competitors.Page 19 outlines thecurrent Price Point differential between t
50、he Retailer and his Competitors.Modern TradeAcademy Unilever Modern Trade Academy(EAP&CBG)2001 Ref:A.P.LangridgePromotion Review ImpactIn most cases,Price Elasticity and On-Sale Mix are not well understood.The recommendation is ESTIMATE the impact,and MEASURE the Actual Result for input to the next
