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Collaborative Category Management ALA Commissary Roundtable May 1, 2014 Blaine Ross – EVP Global Sales & Marketing CMA Adjunct Professor – DePaul University.

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Presentation on theme: "Collaborative Category Management ALA Commissary Roundtable May 1, 2014 Blaine Ross – EVP Global Sales & Marketing CMA Adjunct Professor – DePaul University."— Presentation transcript:

1 Collaborative Category Management ALA Commissary Roundtable May 1, 2014 Blaine Ross – EVP Global Sales & Marketing CMA Adjunct Professor – DePaul University s

2 Blaine T. Ross Currently Executive Vice President Global Sales & Marketing Category Management Association Adjunct Professor - DePaul University 25 years experience in Sales, Marketing and Category Management consulting working with leading retail and manufacture organizations

3 Category Management Association Overview Collaboration Partnership CMA / ALA / DeCA / Suppliers What does DeCA expect from suppliers? Best Practices and how to use customer insights Global Certification Initiative Talent Acquisition / College Recruiting Future of effective Category Management 2.0 Agenda

4 – 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 Practices Encouraging Member Interaction Providing Thought Leadership CMA Overview

5 What is the Category Management Association? The CMA is an association for companies who want to improve the capabilities of their professionals in: 5 Category Management Category Management Shopper Insights & Shopper Marketing Shopper Insights & Shopper Marketing Planogram & Space Management Planogram & Space Management In-Store Execution & Merchandising In-Store Execution & Merchandising The only organization that: Certifies CatMan professionals through industry-wide standards Serves as an unbiased central resource for industry information and best practices

6 Sample Companies working with CMA 6

7 Retailers Care about Category Management Industry InitiativePercent of Respondents Category Management66.5% Sustainability38.5% Diversity31.1% Promoting Your Company as an Employer of Choice31.1% On-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… 8 Share Groups Certification Best Practice Coaching White Paper Availability Private networking Membership rate for events Access to CMA’s e-Newsletter

9 Weekly newsletter o Delivered Wednesday afternoons o Upcoming industry events and Web seminars o Global focus o Tips from solution partners o Share Group meeting agendas 9

10 Monthly Share Groups 10 Insights & Analytics Insights & Analytics Shopper Marketing Space Mgmt. IP Sessions Military IP Sessions Military Solutions Demos

11 Global Industry Events 11 CMA Annual Conference Sept. 30 – Oct. 2, Orlando, FL LatAm Conference May 21 – 22, 2014 – Monterrey, MX

12 Definition of Category Management? CATEGORY MANAGEMENT Is: “A Retailer or Distributor/Supplier Process Of Managing Categories As Strategic Business Units, Producing Enhanced Business Results By Focusing On Delivering Consumer Value” Manufacturer Consumer Retailer

13 Page 13 Category Management is … A business planning process Consists of key elements – Manage the category with a consumer focus – Manage the category as strategic business unit – Develop strategic category plans based on mutual category goals and consumer behavior – Collaborate between retailers and manufacturers to achieve desired profit objectives – Increased focus on Consumer….

14 Category Plan Basics CMA / DeCA Working on Structure & Process 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? What are the goals and objectives? How shall we measure success? 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 Definition Category Role Category Assessment Category Scorecard Category Strategy Category Tactics Plan Implementation Category Review Best Practice Category Management Business Process- Most Retailers Using A Process – Less important the number of steps all now with a focus on the consumer Examine the Scorecard

15 Voice of Shopper WHO are our shoppers? Who WHAT are they buying? What WHY are they buying? Why WHERE are they buying? Where WHEN are they buying? When HOW are we influencing them to buy? How Links to additional sources of information. Other Resource

16 16 Strictly Confidential CMA / DeCA Collaboration Determine how vendors can best help DeCA? Assortment? Consumer Decision Tree Clustering? Shopper and need state marketing? Category Management planning? What Systems and Technologies are needed? Category Tactics

17 17 Strictly Confidential 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 retailers Performance against major scorecard goals will improve – Shopper satisfaction measures will improve – GMROI will improve – Transaction size will increase – Margins will increase – Shelf sets will become easier to shop CMA will help DeCA Be Your Customer’s” First Choice”

18 What Does DeCA Expect from Suppliers? A knowledgeable Account Team or Rep Organization Commitment from Suppliers Armed with relevant data and research Providing Key Facts and Shopper Insights Offering “ Success Models” Persuasive justification for new items 18

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? 19

20 Retailers Focus on Answers to the Really Big Questions : 20

21 Report Executive Briefing Category Management Industry Survey conducted by The Partnering Group (TPG) in conjunction) CMA Research Objectives & Methodology Review of the Key Findings What Leading Companies are Doing

22 Skills & Competencies Perspective These differences may account for some of the disconnects in the supplier-retailer relationships

23 CMA working with DeCa Leadership Team on Category Management Structure & Process Providing Key Metrics for Success

24 Competency defines the characteristics (knowledge, skills, abilities) 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 3 Trends Affecting Cat Man The growing power of the retailer The (digital) empowerment of the shopper The impact of big data Thought Leadership Category Mastery

26 CatMan Maturity Curve Data Analytics & Software Org. Skills Process & Culture

27 Maturity Curve Components

28 Collaboration E

29 How do you refer to category management in your company? Multiple Forms

30 Knowledge platform Relationship platform Process platform Communication platform Category management is … “a platform” Supports all participants – a site for communication and the integration of information and divergent perspectives

31 Category management is … “a funnel” Category management synthesizes information and knowledge within, and across organizations Information from data, Insights from information Direction from insights Data Retailer Supplier

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.

33 Collaboration has two meanings relating to category management Integration of Knowledge Shared View Shopper Focus Multifaceted Leadership Trust Multifunctional/ Multilevel Pre-planning Harmonization Harmonization Barometer Collaboration

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 goal The prerequisites for team success are: Respect The willingness to share information Strong analytical skills The ability to create insight The capability to direct and take decisive action

35 Great teamwork indicates confidence in partners and when found always relates to relationship quality Consider that partner reliance is almost always tied to planning and execution success Good relationships are easily understood A “barometer“ of success…

36 The Category Management Association Certification Program For DeCA

37 Management Association What is certification? Certification can be attributed to people and training – Certification of individuals Is an objective, third-party designation of professional standing Is competency based and based on an individual’s experience and training minimum – Certification of a company’s training program means that the program imparts the necessary competencies to perform category management at designated industry professional standards 37

38 Some of The Organizations Involved In The Development and Vetting Process 38

39 Category Management Standards Individual Certification: Quantifies the skill level of individual category management professionals Ensures the standard has been met or exceeded Coursework Certification: Designated course officially fulfills a requirement towards individual professional certification.

40 Certification Scorecard Simplistic approach 3 levels required fundamentals plus recommended skills Adaptable flexible for companies, big and small will improve over time 40

41 Personal Certification Report

42 3 Certification Levels 42

43 CMA Online Certification Process For DeCA Associates & Supplier Community

44 Individuals 44

45 Learning Programs & Essay Questions:

46 John Doe “Roadma ps” for unachieved levels :

47 Certified Training Providers DeCA – Primary Company Learning Evolution 47

48 Certification has the following specific benefits: 48 Industry leadership Competitive advantage Sustainability - Employee Value Proposition (EVP): Clear message to DeCA employees that you are investing in their success Provides employees with a specific roadmap for professional growth and development Enhance employee morale, retention via professional development Talent expansion and preparation Mutually Beneficial for DeCA and Supplier Community

49 Costs for an Individual’s Certification Initial costs $ – Note Only $ if CMA Member Active Status Costs: o Renewal for an individual’s certification after year 1 is $ annually o Includes: New training programs completed Maintaining certification records Updating certification level 49

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 2.0 Improving internal preparation Defining collaborative behaviors Incorporating new data to generate insights Defining the assessment pathway and tools Incorporating social media and shopper marketing Enhancing execution These need confirmation from the CatMan 2.0 development committee

51 Steering Committee Stakeholders Category Management Association--leadership Retailers—cross channel Suppliers—CPG and beyond Distributors—cross channel Brokers Solution Providers Training Companies Academics

52 Leading edge companies deliver a compelling ROI 3 sustainable Cat Man competitive points of difference: 1.Establishing a category management vision and a roadmap 2.Developing & deploying category management business processes with an infrastructure to support it 3.Determining key competencies and developing those skills in their employees to enable their success

53 Organizing Big Data for Insights Household Behavior Filter Need States Filter Insight Generation Need States Insights Category Insights Price Optimization Forecasting Inputs Retail Loyalty Card Other Retail Behavior Social Media Media Consumption Lifestyle Behaviors Filters Analytics Outputs

54 Digitally Empowered Shopper Data Retailer Shopper Shopper Data Targeted Offers (traditional channels) Basket History Loyalty Card Demographic Data Digital Platform Intent Driven Targeted Offers In-Store Actions & Habits Responsiveness to Offers Lists & List History In-Store Searches & Scans Shopper Location & Shopping Patterns Product Details Price Inventory Product Location Store Map Premium Data Nutrition Eco-index Recipes Ratings & Reviews Comparisons Related Products Product 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 management Having companies or partners present in-class subject lectures Limited internships are offered Students receive less than hours of total category management instruction

58 Universities Teaching Category Management & Sales University of Arkansas Baylor University DePaul University Florida State University Georgia Tech University University of Miami Michigan State University University of St. Catherine St. Joseph University University of South Carolina Northwestern University University of Tennessee University of Texas Texas Tech University Western Michigan University 58


60 DePaul Category Management Partners

61 Conclusion We believe the future success in retail will be driven through effective collaboration: – Effective communication between cat man partners – Effective integration of shopper insights – Significant investment in personal growth and development

62 Key Contacts Category Management Association, Central time USA Blaine Ross, Executive Vice President Global Sales & Marketing, Philip McGrath, Vice President Business Development, Steve Arens, Director Strategic For more information on member benefits and options, visit or To learn more about individual or company certification, 62


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