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About Category Management Association
Serves as an unbiased central resource for industry information on Category Management and Shopper Marketing at the same time that promotes the best practices in the industry.
The CMA is the only organization that certifies CatMan professionals through industry-wide standards.
Their members include Retailers, Manufacturers, Brokers, Solution Providers, Universities Independent consultants, among others..
CMA’s approach encompasses a wide range of strategic views and planning functions
Members
Educational Advisory Council
DePaul University, Florida State University, Northwestern University, St. Joseph’s University, St. Catherine’s University, Texas Tech University, University of Pittsburgh, University of Southern California, University of Texas at Tyler, Western Michigan University, Xavier University
Manufacturers, Brokers, Retailers, Universities, Consultants, Solution Providers and many others.
CMA LATAM Overview
Category Management Association has influenced in Latin America since 2004, but it wasn't until 2010 that opened its office in
Mexico, and from 2016 establishes operations in El Salvador, Colombia, Chile and Peru, from where it has coverage in Latin
America.
Since 2010 some of the activities developed by the team are:
+ 1500 attendees in more than 5 conferences organized by CMA (Mexico, Central America and Colombia)
+ 1200 professionals have attended seminars and workshops: Mexico, El Salvador, Costa Rica, Peru, Colombia, Bolivia and
Chile.
+ 3000 attendees at the plenary sessions of ANTAD, FENALCO, GS1 events.
+ 60 active members.
+ 80 hours webinar with participation of more than + 1000 attendees
+ 60 certified professionals.
+ 480 hours of Best Practices for retailers and manufacturers.
+ 50 Participation in magazines, newspapers, essays on related topics.
+ Synergies collaboration on joint projects.
Main Approaches:
Membership• Online Resources• Discounts• Job Posting• Networking• Webinars• News
Conferences• Case Studies• Panels• Solution Demos• Training• Trade partners• Trends
Best Practices• Focus on improvement.• Proven.• Practical approach• Function and strategy• Costume made.
Certification• Professional• Corporate• International • Modular.• Inclusion of skills and experience
Membership.- Individual or corporate members have important benefits like online resources, discounts in our events, and can participate in our weekly webinars.
Conference and Events.- Through conferences, educational lectures, case studies and panels, knowledge and interaction among professionals is encouraged.
Best Practices.- The CMA promotes and diffuses, through best practices, techniques, processes, skills and tools that enable manufacturers and retailers to continue their improvement in Category Management and Shopper Marketing.
Certification.- The CMA is the only organization offering certification according to objective, industry developed standards.
Category Management Association aims to establish industry standards in Category Management, Shopper Marketing and Shopper insights worldwide.
Collaborates with Manufacturers and Retailers to establish platforms of these disciplines to improve business results.
Only organization that certifies training programs worldwide.
¿Questions?
Muchas gracias Thank youmuito obrigado 非常感谢
ขอบคุณมาก
شكرا جزیال
heel hartelijk bedankt
большое спасибо どうもありがとうございました Dankon tre multe
Vielen Dank
Contac us:Patricia MecenLatin America Conference DirectorCategory Management Association Skype: paty.mecen2Email: [email protected]
Luis Eduardo Herrera AmparanExecutive Vice president LatinoaméricaCategory Management Association Skype: lherrera.cpgcatnetEmail: [email protected]
http://www.catman.global/
New CatMan 2.0™ Process
✓ Examine the Scorecard✓ CatMan 2.0© : Ensure alignment with Shopper Insights at all
points
The End State Vision for CatMan 2.0™
Content differences includes:
• Advances in data and analytics
• Advances in shopper insights and marketing, need state marketing
• Success models and content learning across the process
• Enhancements in organizational skills and capabilities
Format and functionality includes:• Organization of a digital CatMan Knowledge Center
managed by the CMA
• A taxonomy derived from the basic seven step process
• A querying and search function
• Continuous updating from all CPG community stakeholders
A digital resource offering the latest advancements in category management. CatMan 2.0™ differs from CatMan 1.0 in two important ways: Content & Functionality.
Grocery Headlines – Do Not Look Good• The Grocery Industry Confronts a New Problem: Only
10% of Americans Love Cooking– The supermarket and grocery business is likely to suffer strong
headwinds in the future, due to long-term shifts in consumer behavior. Although many people don’t realize it yet, grocery shopping and cooking are in a long-term decline. They are shifting from a mass category, based on a daily activity, to a niche activity that a few people do only some of the time.
Harvard Business Review, Eddie Yoon, 9/2017
Think about this…• Brand Struggles
– Relevance and your future– Private Label is the new normal
• Partnership – Retailer expectations– Put up or Shut up!
• Implementation– The goal rarely accomplished
• Bad Research– Do you really work for you company?– Do you have viable processes?
in-store
point-of-purchase
post-purchase
pre-shop
retailer choice
store experience
store dynamics
store atmosphere
shopping style
shopping basket
shopping routein-store advertising
list-building
channel choice
media consumptionneeds & attitudes
occasion
familial legacy
shelf layout
signage
promotions
pack standout
pack communication
product satisfaction
family satisfaction
recommendation intent
re-purchase intent
loyalty
GAP ANALYSIS consulting & assessment
CLOSE KNOWLEDGE GAPSidentify right methods & technologies
ANALYTICS & DATA INTEGRATION
RECOMMENDATIONS
CREATE & TEST
shopper type by category
Category Definition
Category Role
Category AssessmentCategory Scorecard
Category Strategy
Category Tactics
Plan Implementation
Category Review
Displays and In-Store Ads
Deals
Social Media Relationship Marketing
Search Engine Optimization
User and Advocate Created Content
Apps/Shopping Tools
CatMan
Shopper Marketing
Shopper’s Path to Purchase
The Integrated Path to Purchase
©
Research Methodologies – Qual and Quant
ME
THO
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LOG
Y
In-depth qualitative discussions that are conducted among pre-recruited respondents based on desired criteria (e.g., specific demographics, purchasing patterns, stores shopped, etc.). These discussions are conducted in context (i.e., in home, in office, at an event, etc.) based on desired learnings.
In-depth qualitative discussions that do not have to be conducted in a specific context to reveal relevant insights. Can include various formats: one-on-one, triads, etc. and be conducted in-person or via phone.
In-depth qualitative discussions that are conducted at the moment of truth: In the store. Typically conducted among pre-recruited respondents based on desired criteria. May be combined with an in-home ethnographic portion (e.g., home-to-store). Ideally, shopping is directly observed by the ethnographer, but may also be conducted as a debrief session.
Engagements with research respondents typically prior to in-person research (e.g., FGLLs, Ethnographies,) but can also be a stand-alone methodology. Online diaries typically run for multiple days—weeks and provide a longitudinal view of behavior (e.g., shopping pattern over time, meal creation, etc.). Homework surveys are typically shorter.
Ethnographer observations of activities of interest to identify opportunities and challenges in flow, processes and procedures, etc. May include: shoppers, store employees (stockers, at checkout, in deli, etc.), service providers (phone operators, call center reps), etc.
A primarily quantitative methodology, with some (limited) opportunities for open-end qualitative responses, conducted by stopping shoppers while in store and asking for participation.
In-depth qualitative discussion conducted with a pre-recruited group of respondents based on desired criteria. May include homework that must be completed before the group session to facilitate discussion and group activities.
A quantitative methodology that can be conducted among general (Gen Pop) or targeted respondents based on desired criteria.
Exploratory research, product usage and experience, customer/user experience mapping, and to understand: satisfaction and loyalty, media consumption, channel/retailer choice, list-building and couponing, household dynamics and family decision-making, cultural context, need states, household inventories and pre-planning Exploratory research
Exploratory research, shopper journey mapping, and to understand: in-store navigation, store environment, selection and purchasing decisions, at-shelf interactions (endcaps, products, displays, etc.), promotional interactions, shopping basket, packaging influencers
Collect background information that can be explored further in qualitative interviews (if necessary), engage and build rapport with research respondents
To supplement other research methodologies and uncover additional unmet needs and wants that may not be articulated by research participants
Validate and quantify learnings from qualitative methodologies, especially about store experience, attitudes, preferences and behaviors; Preferred methodology for developing CDTs
Test and/or refine concepts identified through exploratory research, explore attitudes and behaviors, confirm hypothesis identified via data and other insights, develop response lists for quantitative methodologies
Validate and quantify learnings from qualitative methodologies including attitudes, preferences and behaviors; Can be used to develop CDTs
Pre-Shop and Post-Purchase
Any can be discussed, also for research outside the Path-to-Purchase In-Store and Point-of-Purchase
Any can be discussed, also for research outside the Path-to-Purchase
Most typically in-store, also for research outside the Path-to-Purchase
Primarily In-Store and Point-of-Purchase, can cover some Pre-Store such as pre-planning, list making, etc. Any can be discussed
Any can be discussed, care must be taken when covering in-store experiences in the distant past
8+ weeks 6+ weeks 8+ weeksTypically in conjunction with other methodologies
In conjunction with other methodologies 6-12+ weeks 4-6 weeks 6-8 weeks
DE
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Purpose• Identify the strategic issues around which the trading
partners must align internally
• Describe the data and insights which the trading partners need to assemble prior to engaging in joint business planning
• Provide examples of best practice approaches relevant to internal alignment
Importance of Internal Alignment• You prepare to do category management before you “do”
category management
• Manufacturers– What is the definition and CDT?– What is the proper Role?– What are your success models for tactics?
• Retailers– What are your Scorecard metrics?– How does this category fit your corporate strategy and target
shopper?
Organizational Design – Integrating Shopper Insights and Marketing into your Category Management Plans
Results from the Category Management and Shopper Insights Conference
Organizational Design SI/SM SM/SI Factors Snack/Bev
CompanyIce Cream Company
Dry/Frozen Foods
Paper Goods Candy Meat HBC
Organizational location
Marketing/brand development
Customer development and pricing
Separate global group
Marketing Sales Customer marketing
Marketing / co-marketing
FTE’s / where 0 / all SM in brand groups
1-2 on account sales teams
2 on account team + 5 in geo regions
1-2 on account 2 people in major accounts
1-2 people also used as analysts
2-3 on account teams
Reporting to / dotted line
VP brand development / brand groups
VP / limited responsibility to brands by funneling data
Senior VP / account team head and sales VP
VP / customer development
Sales VP / market research
VP business development shared sales services
Brand groups
SI FTE’s and location
1/ brand with dotted line to CI
1/ major account on sales teams
1/ major account + 2 regional, report to SI
1/ brand, with dotted line to CI
1/ major account 1/ account team, dual CI/ analyst role/ dotted line to CI
1/ major account/BUDotted to M&CK
Source of budget
Marketing Sales Equally from sales / marketing
Marketing Allocated to Sales from marketing
Marketing Marketing / in-store
Budget as % total marketing
18% total but 50% market research
10-12% 10% but growing fastest
10%+ 12-15% < 10% 15%
Perceived mission
Build the brand in partnership with retailers
Leads customer activation and helps translate the brand to retail
Builds brand equity by collaborating with retailers
Growing the brand in-store
Design, execute and evaluate brand programs in-store
Supports customers by customer research
Interface between brand and retailer
Relationship with CatMan
Help when required
Helps in supporting the CatMan plans
Not much Very little CatMan provides input into SM
Provides research to help with assortment
SM is a subset of CatMan
CatMan is moving towards proprietary SI in department or direct line reporting on CatMan, especially with retailer influence
Organizational Design/Redesign should be based on your objectives• What are your objectives?
• What helps you achieve those objectives?
• What prevents you from accomplishing more?
Organizational Design/Redesign should be fluid• It is more about the integration of ideas than the titles in
the box
Pre Session attendees are not pleased with their Insights processes, 84% are dissatisfied…
NO84%
Yes
Small base sizes
…they also feel they aren’t armed with the proper tools to grow their business
NO90%
Yes
Small base sizes
Most Organizations have SI in their Marketing Department followed by CatMan then Sales with CatMan showing increases over prior year
Small base sizes
“Your” Category Management: Alignment
• Reporting Lines• Data/Reports• Staff/Support• Process
INTERNAL• P
EXTERNAL
• Resources/Process• Roles/Responsibilities• Reward/Recognition• Key Deliverables
YOUR TEAM
Retailer• Involvement/Resp• Data Access• RFP/Pick?• Process
Manufacturer • Reporting Lines• Who do you serve• Confidential• Time spent Internal
INTERNAL• P
EXTERNAL
• Captain• Validator• Challenger
• Who do you serve• Time• Resource to role
choice
YOUR TEAM
The Key Learning’s to deliver Insights
• Having the Right Data/Process is solving 40% of the issue • it gets you to the what…….
•Having the Right People/Training is solving 40% of the issue • it gets you to the why ……
• Having the Right Tools/Data Visualization is solving 20% of the issue
• It gets the other people to the what and why…..• Then you can focus on “How”
Category Definition & StructureWhat defines a category and how is it organized in the shopper’s mindCategory management is “broken” here
Category Role DefinitionsName Definition
Destination
▶Defines the image of the retailer for quality, selection, value, and service.
▶Leads other categories in size, market share, consumer satisfaction, service level, and operating expense.
Routine/Preferred
▶Helps create a positive image of the retailer in the consumer's mind. Important to target consumers
Occasional/Fill-in
▶A necessary commodity to the target consumer's life style.
Commodity/Convenience
▶A limited product range sufficient to fill the target consumer's basic needs within a single shopping trip.
Clear Objectives Aligned Work
Choice Cat Man 2.0 Work Flow
Objective Internal Alignment
Category Role
Category Definition/Decision Tree
People Organizational Design
Purpose of Category Definition & Structure
• Wrong on process = Wrong on results
• Breakthroughs = Big bucks
• Put the shopper first
The right Category Structure can create sales breakthroughs
Why do you want a Category/Consumer Decision Tree?• A CDT shows you your shoppers’ purchase decision process in three dimensions:
Selections, Sequence, and Significance
• First, you understand their selections: What choices are they making on the way to purchase?
• Next, you understand the sequence in which those choices are made: What is decided pre-shelf, at-shelf, in-the-moment? Shopper Journey/P2P
• Finally, you understand the significance of each of those decisions: How much does one choice matter relative to the others?
Understanding the purchase decision in this way gives you direction, for marketing, messaging, product development, shelf optimization and more
How do you get a Category/Consumer Decision Tree?• There are a number of quantitative and qualitative methodologies that will help
you uncover the CDT, and they all have the following three major elements in common:
• Shoppers indicate decisions they made
• Shoppers describe the chronological order of those decisions
• Shoppers are asked to rank the importance of those decisions relative to others made in the course of the decision (Max-Diff exercise)
A CDT delivers the actionable intelligence you need to help your shopper on the way to making a purchase. It gives you direction for everything from marketing and packaging
to aisle signage, shelf layout, and assortment
Accurate CDT Research Yields• True decision hierarchy
• Clear and definitive shelf layout preferences
• Potential product and packaging changes
• Future growth white space
Common Mistakes and Misconceptions• A true CDT is called a Selection Tree because it identifies the motivation/why’s
behind shopper behaviors
• A “traditional” market structure CDT is a De-Selection Tree because it is done by analyzing substitutions, not selection criteria. If you only give respondents 3-4 attributes to consider then brand is higher on the list.
• In categories where brand is really high on the tree, shopping is very decisive and fast—often taking 15-20 seconds. Because all the shopper needs to do is identify and grab the desired brand.
• If observed selection takes longer –this isn’t a brand decision and you have work to do. Brand may play into navigation at the shelf, and it is likely something many shoppers de-select, but they are making more complicated decisions than just “not that brand… that one.”
• CDT research should be evaluated and updated as you update your plan and planogram
CDT Case Study: LaundrySub-Category differences in CDT
• A retailer came to us to better understand how customers think about natural laundry detergents
• What we discovered through the CDT upended their understanding of the category
• Previously, they believed that competitiveness lay in brand, but we found that for allergy sufferers, the presence of allergens underlies all other factors
Allergy-free
Brand
Type
Price
Machine SuitabilityRESULT: We re-designed the shelf to create an Allergy-free section, and increased profits by 47%
Finding products without allergens is critical for allergy sufferers, as well as those who are interested in ‘cleaner’ cleaning products
!
CDT Case Study: TiresGender specific differences in CDT
• A retailer came to us to better understand why women weren’t buying tires, despite shopping other categories
• What we discovered through the CDT revealed that women have specific needs in the automotive department that caused them to reject the category entirely
• Previously, they believed that competitiveness lay in pricing, but we revealed that women had to feel that the tires they might buy would keep their families safe, and the retailer’s category presentation discouraged their trust
Clean, Safe Environment
Type
Brand
Price
RESULT: Women tire purchasers now represent 63% of category purchases, up from 11%; Overall sales increased 17%
Women will reject an entire category at a retailer they frequent if the aisles aren’t clean, bright, and safe
!
CDT Case Study: Pet TreatsPet Parents, Boomers, CDT mindset
• A pet treat manufacturer came to us to better understand how customers think about pet treats – their retail partner was losing share
• What we discovered through the CDT helped them see the category the way their customers did: As an opportunity to care for a pet in a unique, personalized way
• Previously, they believed that customers were looking for treats based on the size of their pets, but we discovered that customers started with a goal in mind (entertain the dog, improve his health, show him love, etc.), before looking for the right size/flavor narrowing
Owner Goal
Type
Size
FlavorRESULT: We re-designed the shelf to fit the owner’s mindset, the category grew 8% overall, with 34% coming from a previously unknown segment which focused on healthier treats of all kinds
The owner’s goal is paramount: What the owner wants the treat to do for the dog is more important than other factors!
CDT Case Study: Pregnancy Test Kits• Prior work conducted by the brand and the retailer
indicated brand and price led the decision process, respectively
• In actuality, neither of these attributes were a high priority for PTKs
• Accurate representation of true foundational decision attributes shoppers consider is imperative – Garbage In/Garbage Out (CDT and Segmentation guilt)
Source:
Significant difference at 90% confidence
BRAND AND PRICE DO NOT DRIVE CATEGORY SHOPPER TO PURCHASE -PTK PURCHASERS ARE EXTREMELY FOCUSED ON THE EVIDENCE OF PRODUCT EFFICACY THAT CAN BE FOUND ON THE BOX
QP/O15. Below are some factors that you might consider when choosing a pregnancy/ovulation test kit. Please rate each factor in terms of how important it is when selecting a pregnancy test kit on a scale from 1 to 5; QP/O16-18. Which of the factors is most/second most/third most important?
❖ Indicators of efficacy and usefulness like % Accuracy and Early Detection are very compelling to shoppers in-aisle, and should be emphasized wherever possible
Source:
Significant difference at 90% confidence
PTK AND OTK SUMMARY CONSUMER DECISION TREES: MOST LIKELY DECISION PATHS
QP/O15. Below are some factors that you might consider when choosing a pregnancy/ovulation test kit. Please rate each factor in terms of how important it is when selecting a pregnancy test kit on a scale from 1 to 5; QP/O16-18. Which of the factors is most/second most/third most important?
❖ Accuracy is top of mind for all diagnostics shoppers
% Accura
cy
Early Detecti
on
Price
PTK OTK
% Accurac
y
Peak Fertility Indicato
r
Use at any time
of dayTo
p 3
cri
teri
a in
ord
er
of
co
nsi
de
rati
on
Category Reinvention Case Study: CDT Changed the Food Storage Category
•
•
▪ Category Issues
✓ 40% of shoppers find the department difficult to shop – time wasted
✓ Shoppers shop category by usage
✓ Shelf merchandising is hap-hazard (Trays/PDQ’s used for some cases – cut case for some, hand stacked for others)
✓ Retailer captures only 26% of category purchases across all channels
▪ Category Solutions
✓ Transition from brand set to product type set
✓ Utilize PDQs
✓ Add category name to Aisle Sign
✓ Fix assortment
✓ Under assorted in sliders in storage bags
✓ Under assorted in foil at the aggregate
✓ Move section near food items to improve adjacencies
✓ Outpost Food Bags to other departments
Category Role DefinitionsName Definition Retailer's Objectives Retailer's Activities
Destination
▶ Defines the image of the retailer for quality, selection, value, and service.
▶ Leads other categories in size, market share, consumer satisfaction, service level, and operating expense.
▶ A primary provider of category products to target consumer.
▶ Driving profit is an important secondary objective.
▶ Continuous, intense management attention.
▶ Biggest investment for inventory, store presence, service level, and expense management.
Routine/Preferred
▶ Helps create a positive image of the retailer in the consumer's mind. Important to target consumers.
▶ Deliver consistent, competitive overall value to the target consumer.
▶ Achieve strong market share and reasonable profit.
▶ Significant management attention and resources to ensure balanced results on the scorecard.
Occasional/Fill-in
▶ A necessary commodity to the target consumer's life style.
▶ Be a major provider of the products in this category.
▶ Deliver competitive value to consumers.
▶ Reinforce the image of the store as the one capable of meeting all consumer's needs.
▶ Allocate resource to drive profit, cash flow, and a reasonable return on assets.
▶ Ensure sufficient level of service.
Commodity/Convenience
▶ A limited product range sufficient to fill the target consumer's basic needs within a single shopping trip.
▶ Reinforce the retailer's image as a consumer-friendly, time-saving place to shop.
▶ Deliver profit and increased market basket size.
▶ Emphasis on time-saving convenience as opposed to price, assortment, or service.
Thank you – we look forward to working with you to build your Category Management plans
Contac:Patricia MecenLatin America Conference DirectorCategory Management Association Skype: paty.mecen2Email: [email protected]
Contac:Luis Eduardo Herrera AmparanExecutive Vice president LatinoaméricaCategory Management Association Skype: lherrera.cpgcatnetEmail: [email protected]