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Category captains in «LENTA» Basic principles of cooperation.

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Presentation on theme: "Category captains in «LENTA» Basic principles of cooperation."— Presentation transcript:

1 Category captains in «LENTA» Basic principles of cooperation

2 02.06.2014 5:41 WE ARE INTERESTED IN ATTRACTING Category Captains! Category Captain is Lentas partner having the priority of category management in Lenta, as well as receiving all information about Lenta, required for this purpose. Information about storees and category modifications plan Lenta company standards and explanatory notes Sales statistics Results of marketing research Joint research and experiments Priority in giving recommendations on category modifications

3 02.06.2014 5:41 WE ARE INTERESTED IN ATTRACTING Category Captains! HAS HAD CONSIDERABLE WORK EXPERIENCE IN THE CATEGORY HAS BEEN LENTAS LOYAL SUPPLIER SHARES AND IS PREPARED TO ACHIEVE LENTAS GOALS IN CATEGORY PROMOTION IS PREPARED TO INVEST INTO LENTA CATEGORY PROMOTION Being a category captain implies serious responsibility. That is why Lenta category captain status can only be given to a supplier after multiple negotiations and under the condition that he meets the following basic requirements:

4 02.06.2014 5:41 CATEGORY CAPTAIN AIMS AT GENERAL PROMOTION OF CATEGORY IN WHOLE CATEGORY GOAL: to provide for like4like category turnover gain exceeding the one provided by the markets natural growth rates


6 02.06.2014 5:41 CAPTAIN USES ACTUAL AND RELEVANT DATA Category in whole shall be analyzed Analysis of the results of the existing customer surveys Analysis of the results of target customer surveys Analysis of retail audit data Analysis of consumer panel data Analysis of Russian retail networks experience Analysis of foreign companies experience Recommendations SKU of all suppliers shall be analyzed

7 02.06.2014 5:41 THE LIST OF PARAMETERS FOR CATEGORY ANALYSIS SHALL BE DETERMINED IN THE COURSE OF NEGOTIATIONS Depending on the project tasks, data structure of may change

8 02.06.2014 5:41 RECOMMENDATION IS GIVEN IN THE FORM OF SPACE PLANS… Before Sample space plan in category Water Table and drinking water together Sparkling and non-sparkling water mixed Brands in mixed volume are placed in different sections Expensive and cheaper brands mixed Shelf navigation is missing Big packages occupy much shelf space

9 02.06.2014 5:41 … WITH DETAILED DESCRIPTIN AND SUBSTANTIATION OF CHANGES After Table and drinking water is placed in different sections Shelf navigation in place Brands within one segment are placed according to prices Sparkling and non- sparkling water is separated and supplied with proper navigation Big packages are placed only on pallets Within a segment and brand various package volumes are placed next to each other One of the proposals for outlay optimization. EXAMPLE! NOT REALIZED YET Change of assortment structure per segments Change of goods layout principles Change of navigation Change of trade equipment The list of SKU offered for withdrawal (with consideration of new products, underdeliveries, etc.) The list of SKU offered for introduction to the goods range (with substantiation) Space plans and schemes showing the changes offered

10 02.06.2014 5:41 RECOMMENDATIONS THAT WILL NOT BE CONSIDERED If they unreasonably infringe upon the interests of the other category and/or private brand suppliers If data not relating to the considered category, channel, time period, region are used for substantiation If they do not promote the categorys goals If they do not correspond to Lentas standards GENERAL PROMOTION OF CATEGORY IN WHOLE IS THE MAJOR ESTIMATION CRITERION!

11 02.06.2014 5:41 ALL PROJECT PARAMETERS ARE GIVEN IN ONE DOCUMENT Terms and definitions Goal of the project Stores where the project is realized Stages of the project Representatives of the parties, involved in the project Rights and responsibilities of the parties Cost of services and payment order Data exchange and recommendation requirements Data confidentiality Liabilities of the parties Miscellaneous conditions Category Captain Agreement CAPTAIN IS AWARE OF ALL THE REQUIREMENS HIS RECOMMENDATIONS MUST MEET

12 02.06.2014 5:41 PROJECT APPROACH TO COOPERATION time I-st quarter II-nd quarter III-rd quarter IV-th quarter Setting goals and tasks, coordination of preliminary timing and budget of the project, coordination of the order of interactions. Selection of Captain. Development and coordination of the plan for introduction of the recommendations Estimation of the final results of the project, setting goals and tasks for the next project Estimation of the first results of the project Introduction of recommendations in stores Carrying out the analysis, development of recommendations Check of recommendations, making corrections, approval of final decisions Suppliers apply to Commercial Service, to their category manager Lenta together with Category Captain make resume of the project Timing of the project greatly depends on category goals and comprehensiveness of the offered changes Tasks Members Persons in charge Timing Budget Performance evaluation

13 02.06.2014 5:41 MOST STAGES OF THE PROJECT ARE REALIZED IN CLOSE INTERACTION BETWEEN CAPTAIN AND LENTA StageMembers I. Definition of goals, tasks and restrictions per category II. Primary briefing: goals- setting, discussion of tasks, coordination of general conditions, development of general plan of actions III. Development of detailed plan of actions, timing and budget of the project per category IV. Coordination of the offered plan, budget, timing with Lenta, approval of project design V. Collection and analysis of data, preparation of recommendations for the first reading VI. Analysis of the offered recommendations, preparation of the list of corrections VII. Making corrections, preparation of the approved list of recommendations VIII. Approval of recommendations, development of introduction plan IX. Introduction of the recommendations accepted for work X. Estimation of the projects efficiency, resume of the project XI. Starting the new project Captain

14 02.06.2014 5:41 DISTRIBUTION OF THE ROLES OF CS AND MD IN LENTA Commercial Service Marketing Department Setting goals and tasks, definition of restrictions Estimation of recommendations Decision-making Submission of data Checking the relevance of recommendations Estimation of commercial efficiency Planning of target investigations To receive category captain status in Lenta, please apply to Commercial Service Manager of your category ! Selection of category captain, determination of cooperation terms

15 02.06.2014 5:41 THE ACHIEVED RESULTS LIKE4LIKE SUB-CATEGORIES GROWTH DYNAMICS, % Data provided by SAP BW, 2006 – 2008 (sale volumes of the stores that worked since 2006 are compared month by month, year by year) Рекомендации капитана внедрены


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