Presentation on theme: "Collaborative Category Management ALA Commissary Roundtable"— Presentation transcript:
1 Collaborative Category Management ALA Commissary Roundtable May 1, 2014Blaine Ross – EVP Global Sales & Marketing CMAAdjunct Professor – DePaul Universitys
2 Blaine T. RossCurrently Executive Vice President Global Sales & MarketingCategory Management AssociationAdjunct Professor - DePaul University25 years experience in Sales, Marketing and Category Management consulting working with leading retail and manufacture organizationsREAD YOUR BACKGROUND
3 Agenda Category Management Association Overview Collaboration Partnership CMA / ALA / DeCA / SuppliersWhat does DeCA expect from suppliers?Best Practices and how to use customer insightsGlobal Certification InitiativeTalent Acquisition / College RecruitingFuture of effective Category Management 2.0
4 CMA Overview The CMA is a global community of professionals Our purpose is to deliver a compelling ROI on Cat Man by improving the overall shopper experience to include:Sharing Industry Best PracticesEncouraging Member InteractionProviding Thought Leadership
5 What is the Category Management Association? Best Practices for Successful Trade PartneringWhat is the Category Management Association?The CMA is an association for companies who want to improve the capabilities of their professionals in: CategoryManagementShopper Insights & ShopperMarketingPlanogram&SpaceManagementIn-Store Execution&MerchandisingThe Category Management Association (CMA) is a central source of global industry information for all the strategic and planning functions of category management, shopper insights, space management, and shopper marketing. The CMA is the only organization that certifies CatMan professionals through industry-wide standards.The only organization that:Certifies CatMan professionals through industry-wide standardsServes as an unbiased central resource forindustry information and best practices
6 Sample Companies working with CMA Best Practices for Successful Trade PartneringSample Companies working with CMAFor a complete list of clients click this link:
7 Retailers Care about Category Management Industry InitiativePercent of RespondentsCategory Management66.5%Sustainability38.5%Diversity31.1%Promoting Your Company as an Employer of ChoiceOn-pack nutrition labeling26.1%Produce Traceability Initiative (PTI)19.9%Geographic Expansion13.0%GS1 DataBar9.3%Source: Progressive Grocer Market Research 2012
8 CMA Membership benefits include… Best Practices for Successful Trade PartneringCMA Membership benefits include…Share GroupsCertificationBest Practice CoachingWhite Paper AvailabilityPrivate networkingMembership rate for eventsAccess to CMA’s e-NewsletterMembership in the CMA provides real value to our associate by providing access to these association services
9 Best Practices for Successful Trade Partnering Weekly newsletterDelivered Wednesday afternoonsUpcoming industry events and Web seminarsGlobal focusTips from solution partnersShare Group meeting agendasCatMan Weekly”An e-newsletter that delivers articles and thought leadership not found on the usual news and trade sites.
10 Best Practices for Successful Trade Partnering Monthly Share GroupsInsights &AnalyticsShopper MarketingSpace Mgmt.IP SessionsMilitarySolutions DemosOne important benefit available with CMA membership is participation in monthly share groups. Meetings are held in essential industry disciplines including:Insights and Analytics (Click)Shopper Marketing (Click)Space Management (Click)Intellectual property sessions communicate topics of special interest and usually communicate proprietary content, (Click)Finally, we present a variety of technologies and demonstrate the applicability to your category management environment.All of these sessions provide continuous education on industry best practice.
11 Global Industry Events CMA Annual Conference Sept. 30 – Oct. 2, Orlando, FLLatAm ConferenceMay 21 – 22, – Monterrey, MXAttendance generally around 350 category management professionals.Comprised of Retailers, Manufacturers, Brokers, Solution Providers, Universities.Thoroughly planned conference to ensure networking at all levels.
12 Definition of Category Management? CATEGORY MANAGEMENT Is:“A Retailer or Distributor/Supplier ProcessOf Managing Categories As Strategic Business Units,Producing Enhanced Business ResultsBy Focusing On Delivering Consumer Value”ManufacturerConsumerRetailer
13 Category Management is … A business planning processConsists of key elementsManage the category with a consumer focusManage the category as strategic business unitDevelop strategic category plans based on mutual category goals and consumer behaviorCollaborate between retailers and manufacturers to achieve desired profit objectivesIncreased focus on Consumer….
14 Category Plan Basics CMA / DeCA Working on Structure & Process Best Practice Category Management Business Process- Most Retailers Using A Process – Less important the number of steps all now with a focus on the consumerWhat are the goals and objectives?How shall we measure success?What products are included?What are the sub- categories?How important is the category to the consumers? To the retailer?Who buys the category?How is the Category doing?How will we achieve our goals?What are the elements of the plan for each sub- category or segment?Who does what and when?Category DefinitionCategory RoleCategory AssessmentCategory ScorecardCategory StrategyCategory TacticsPlan ImplementationCategory ReviewExamine the Scorecard
15 Voice of Shopper Who What Why Where When How Other Resource WHO are our shoppers?WhoWHAT are they buying?WhatWHY are they buying?WhyWHERE are they buying?WhereWHEN are they buying?WhenHOW are we influencing them to buy?HowLinks to additional sources of information.Other Resource
16 CMA / DeCA Collaboration Determine how vendors can best help DeCA?Assortment?Consumer Decision TreeClustering?Shopper and need state marketing?Category Management planning?What Systems and Technologies are needed?Category Tactics
17 How Will CatMan Excellence Help DeCA? DeCA will strengthen its position as retailer of choice for your target consumers.DeCA will become more competitive versus major conventional retailersPerformance against major scorecard goals will improveShopper satisfaction measures will improveGMROI will improveTransaction size will increaseMargins will increaseShelf sets will become easier to shopCMA will help DeCA Be Your Customer’s” First Choice”
18 What Does DeCA Expect from Suppliers? A knowledgeable Account Team or RepOrganization Commitment from SuppliersArmed with relevant data and researchProviding Key Facts and Shopper InsightsOffering “ Success Models”Persuasive justification for new items
19 DeCA first questions to Sales & CATMAN Teams Please tell me the five most important facts or insights that I should know to plan our business together?Please tell me the most important changes that have occurred in your category since we last talked?
20 Retailers Focus on Answers to the Really Big Questions:
21 Report Executive Briefing Category Management Industry Survey conducted by The Partnering Group (TPG) in conjunction) CMAResearch Objectives & MethodologyReview of the Key FindingsWhat Leading Companies are Doing
22 Skills & Competencies Perspective These differences may account for some of the disconnects in the supplier-retailer relationships
23 Best Practices for Successful Trade Partnering CMA working with DeCa Leadership Team on Category Management Structure & Process Providing Key Metrics for SuccessBest Practices for Successful Trade Partnering
24 required to enable success in performing a specific area of work Competency defines the characteristics (knowledge, skills, abilities)required to enable success in performing a specific area of work
25 Thought Leadership Category Mastery 3 Trends Affecting Cat ManThe growing power of the retailerThe (digital) empowerment of the shopperThe impact of big data
26 CatMan Maturity Curve Data Analytics & Software Org. Skills Process & Culture
29 How do you refer to category management in your company? Cat Man has 3 roles in a company… It serves:As a platformAs a funnel, and as aCenter for dissemination of information knowAs a funnel foren research results can lead you to jump to the wrong conclusions……Multiple Forms
30 Category management is … “a platform” Supports all participants – a site for communication and the integration of information and divergent perspectivesKnowledge platformRelationship platformProcess platformCommunication platformOften research results can lead you to jump to the wrong conclusions……
31 Category management is … “a funnel” Category management synthesizes information and knowledge within, and across organizationsInformation from data,Insights from informationDirection from insightsDataRetailerSupplierOften research results can lead you to jump to the wrong conclusions……
32 Category management is … “a wheel hub” Enables business performance of each partner and facilitates interaction among partners - and particularly amongst functions within a single organization.Partner to partnerSilo to siloCat Man to sales, to research, to brand,….
33 Collaboration has two meanings relating to category management SharedViewCollaborationHarmonizationShopperFocusIntegration of KnowledgeTrustBarometerMultifaceted LeadershipPre-planningMultifunctional/ Multilevel
34 Collaboration Research Harminization Meaning… The ability for manufacturers and retailers identifying common value or return to working effectively as a team toward a common goalThe prerequisites for team success are:RespectThe willingness to share informationStrong analytical skillsThe ability to create insightThe capability to direct and take decisive actionWhat this presentation seeks to accomplish is to provide focus to the findings of our study and frame some key insights from the data. This study establishes areas to pursue additional research…
35 A “barometer“ of success… Great teamwork indicates confidence in partners and when found always relates to relationship qualityConsider that partner reliance is almost always tied to planning and execution successGood relationships are easily understoodWhat this presentation seeks to accomplish is to provide focus to the findings of our study and frame some key insights from the data. This study establishes areas to pursue additional research…
36 The Category Management Association Certification Program For DeCA You are receiving this message because you are currently employed in the category management industryAre you aware of the certification initiative that is reshaping the category management community? This brief video will inform you about how this industry wide initiative affects you and how you can personally benefit from certification.
37 What is certification?Certification can be attributed to people and trainingCertification of individualsIs an objective, third-party designation of professional standingIs competency based and based on an individual’s experience and training minimumCertification of a company’s training program means that the program imparts the necessary competencies to perform category management at designated industry professional standardsÅCategory Management Association
38 Some of The Organizations Involved In The Development and Vetting Process The way we approached this effort was to establish a steering committee that clearly leveraged category management expertise within our industry. The members of our steering committee represent over 115 years of category management experience! We were also adamant about ensuring diversity on the committee. Our committee represents various businesses such as food and beverages, health and beauty care, pet products and other manufactured goods. And we also made sure that we have good representation from both large and small companies.One of the most challenging aspects of this effort was to come up with an approach that would work across our industry. You can imagine the potential pushback if we had tried to identify a single structure. Companies would complain that the solution wouldn’t fit their needs. So given this challenge, one of the most rewarding aspects of this work has been the creation of a flexible framework that let’s companies tailor the guidelines to their organization and needs. I just mentioned on the previous slide the flexibility built into our model for organization structure. The other area can be tailored is the skill progression by role. Again, if look at the last page in your handouts, you will notice that the individual skill sets each have a progression path identified from left to right. The beauty of our model is you have the flexibility to slide that skill progression left or right, depending on your company’s expectations for performance within roles.With the framework and process in place, our next step was to assemble a subcommittee that leveraged both category management expertise as well as educational expertise. I’m going to ask Dan Strunk from De Paul University to come up and share some perspective on how the subcommittee is working to define the various skill competencies as well as the framework for evaluating training programs that support the development of these skill proficiencies.
39 Category Management Standards Individual Certification:Quantifies the skill level of individual category management professionalsEnsures the standard has been met or exceededCoursework Certification:Designated course officially fulfills a requirement towards individual professional certification.Å
40 Certification Scorecard Simplistic approach3 levelsrequired fundamentalsplus recommended skillsAdaptableflexible for companies, big and smallwill improve over time
41 Personal Certification Report Once you have been certified, the Category Management Association will issue you a personal certification report (CLICK) indicating the level you have attained (CLICK) and the steps you can take towards the next level of certification. You will also be provided with logos (Click) that can affixed to your personal stationary or business cardsThis is a build slide with animations for brainshark
45 Learning Programs & Essay Questions: As you scroll down the screen you will see the section of the on line CPCA form you will review 10 required learning programs and 2 recommended learning programs. Our on line system has added essay questions to ensure that we are able to accurately understand your qualifications. You must complete the essay questions to be certified even if you have successfully taken course equating to learning programs from certified training companies. All essay questions are experiential and ask you to relate your category management work experiences to the learning program content.This image is a screen shot of the pricing analysis learning program. If you believe you have the necessary competencies please check the button indicating yes. You will then fill in where you took your training, or what tell us what your relevant experience is in the area provided and then complete the essay question in its box. You may want to write your answers in a word program and copy and paste as our system does not have a spell check feature.
46 “Roadmaps” for unachieved levels: John DoeJohn Doe
47 Certified Training Providers DeCA – Primary Company Learning Evolution This is the list of training providers that have had their content certified by the CMA. This means these providers curriculum maps back to the CMA Standards and the rigor behind their course work meets the CMA’s expectations.Below is contact information:
48 Certification has the following specific benefits: Industry leadershipCompetitive advantageSustainability - Employee Value Proposition (EVP):Clear message to DeCA employees that you are investing in their successProvides employees with a specific roadmap for professional growth and developmentEnhance employee morale, retention via professional developmentTalent expansion and preparationMutually Beneficial for DeCA and Supplier Community
49 Costs for an Individual’s Certification Initial costs $ – Note Only $ if CMA MemberActive Status Costs:Renewal for an individual’s certification after year 1 is $ annuallyIncludes:New training programs completedMaintaining certification recordsUpdating certification level
50 Six areas of improvement Future of Catman 2.0 Release Based on a review of the major changes in the ecosystem and a consensus of practitioners, here are the primary areas of focus to upgrade CatMan 1.0 to CatMan 2.0Improving internal preparationDefining collaborative behaviorsIncorporating new data to generate insightsDefining the assessment pathway and toolsIncorporating social media and shopper marketingEnhancing executionThese need confirmation from the CatMan 2.0 development committee
52 Leading edge companies deliver a compelling ROI 3 sustainable Cat Man competitive points of difference:Establishing a category management vision and a roadmapDeveloping & deploying category management business processes with an infrastructure to support itDetermining key competencies and developing those skills in their employees to enable their success
53 Organizing Big Data for Insights Other Retail BehaviorSocial MediaMedia ConsumptionInputsLifestyle BehaviorsRetail Loyalty CardHousehold Behavior FilterFiltersNeed States FilterAnalyticsOutputsInsight GenerationForecastingNeed States InsightsCategory InsightsPrice Optimization
54 Digitally Empowered Shopper Data RetailerShopperShopper DataTargeted Offers (traditional channels)Basket HistoryLoyalty CardDemographic DataDigital PlatformIntent DrivenTargeted OffersIn-Store Actions & HabitsResponsiveness to OffersLists & List HistoryIn-Store Searches & ScansShopper Location & Shopping PatternsProduct DetailsPriceInventoryProduct LocationStore MapPremium DataNutritionEco-indexRecipesRatings & ReviewsComparisonsRelated ProductsProduct Data
55 Category Management The Future Questions Do you have the right data?Do you have the right data storage?Can you do on the fly analytics?Do you have the right people?Are you Rewarding and Recognizing them?Are you developing the skills of your people?Are you pushing the envelope on their needs?
56 Can Universities Serve as a Source of Category Management Talent?
57 The State Of Category Management Education The standard approach to developing category management talent on college campuses has been accomplished by:Instructing students in food marketing or retailing, and offering them a single course in category managementHaving companies or partners present in-class subject lecturesLimited internships are offeredStudents receive less than hours of total category management instruction
58 Universities Teaching Category Management & Sales University of ArkansasBaylor UniversityDePaul UniversityFlorida State UniversityGeorgia Tech UniversityUniversity of MiamiMichigan State UniversityUniversity of St. CatherineSt. Joseph UniversityUniversity of South CarolinaNorthwestern UniversityUniversity of TennesseeUniversity of TexasTexas Tech UniversityWestern Michigan University
59 DePaul University Consumer Packaged Goods Track ADVANCED VALUATIONS FOR BUSINESSFUNDAMENTALS OF SALES & NETWORKINGEFFECTIVE BUSINESS COMMUNICATIONSSCIENCE OFRETAILINGPRINCIPLES OF CATEGORY MGMTCASES INCATEGORY MGMTYou need to be familiar with our course to present this slideRetail Grocery&FoodserviceCenter for Sales Leadership | DePaul University
61 ConclusionWe believe the future success in retail will be driven through effective collaboration:Effective communication between cat man partnersEffective integration of shopper insightsSignificant investment in personal growth and development
62 Category Management Association, 210.587.7203 Central time USA Key ContactsCategory Management Association, Central time USAFor more information on member benefits and options, visit orTo learn more about individual or company certification, Blaine Ross, Executive Vice President Global Sales & Marketing,Philip McGrath, Vice President Business Development,Steve Arens, Director Strategic Alliances,