Category Management Association Meeting 8/18

Agenda Introductions Category Management Association Overview Certification Program Category Management Education Programs CMA / Alberto Culver Certification DePaul Category Management Board Opportunity

Category Management Association Overview

What Is The Category Management Association? Association Mission Statement: Advancing professional standards in category management The Association is committed to: Enabling peer interaction Disseminating industry information Establishing a platform to improve category management education training Establishing an industry certification program Encouraging industry collaboration www.cpgcatnet.org The Association Does No Training

Association Overview Founded in 2004, to better define the discipline, responsibilities and skill sets of a "category manager;” to formalize training and to create certifications; serves as the global category management community Evolved to cover a broad range of strategic insights and planning functions: Consumer Insights, Advanced Analytics, In-Store Execution, Market Research, Space Management, Shopper Insights, Pricing Trade Promotion, Consumer Segmentation and Targeting www.cpgcatnet.org

Certifications and Trainings Visit our Category Management Association Website at www.cpgcatnet.org to learn more about membership options Industry Information Share Groups Conferences & Events Certifications and Trainings

Association Overview Offers focused share groups, global events, resource directories, best practice surveys, e-newsletter, custom-sourced targeted news Only organization certifying individual professionals and companies based on recognized industry-wide standards

Benefits Of Membership Our only vested interest is in our members: As a member of the Category Management Association, you are a member of the global category management community. As a member of this community, you help to define the function and strategy, shape standards and practices, and create innovations. Membership is a career investment.

Benefits of Membership Definition: It depends on who you ask. The Association is helping to better define roles and structures for a common language. Category management includes: Consumer insights, analytics, in-store execution, space management, shopper marketing, TPM, and pricing. Standards: It depends on who you ask. The Category Management Training Standards and Certifications Steering Committee established industry-wide standards - defining expected skill proficiency. Certification is based on these recognized standards. Innovation: It depends how you ask. Having a common language and common processes in place, provides the means for better trading partner collaboration and joint value creation is the catalyst for improvement and innovation.

News & Resources

Share Groups Features Upcoming meeting info Past meeting info Bulletin board access link Pre-sorted, targeted news

Share Groups Share Groups connect you to the global catman community. Monthly Web-based meetings  In-person at annual Conference Insights & Analytics OrgDev ROI Catman* Shopper Marketing Space Mgmt. Private discussion boards  Presentations from industry leaders Join one or several. *Director level/Corporate Members only

Share Groups-Sample Speakers Insights & Analytics Kim Hoffman, Dr Pepper Jason Green, Category Advisor, Dannon - US Walmart Team Meghan Sullivan, HJ Heinz Dave Boissevain, Director Retail Strategy and Planning, Frito Lay Org Dev Christine Walsh, Director of Marketing and Education for Supervalu University Keith Conard and David Zahn of Winston Weber and Associates, Jeff Clow, a Partner in the Training Practice of The Partnering Group, Manny Zayas, Director of Category Management, PepsiCo, Shopper Marketing Mack Hoopes, Henkel Space Management Christina Kayfus, Megan Smith & Jill Godfrey, Texas Tech Don Whitworth, Winn Dixie Joe Koch, Director of Sales Strategy, Dole Fresh Vegetables

The meeting place for trading partners. Global Events The meeting place for trading partners. Sessions feature retailers and manufacturers discussing their current strategy Discover new ways of working together 2010 Events Latin America, Primer Congreso, May 27-28, Monterrey, N.L. Mexico Annual Conference “Retail-Centric Business Planning,” Oct. 26-28, Atlanta, GA, USA Agendas also include: Keynotes from catman leaders Workshops Roundtables Training

Career Services Corporate Member team leaders can take advantage of exclusive benefits for talent acquisition. Unlimited job postings Website Newsletter Discounted recruitment fees

Category Management Association Membership Includes Weekly E-Newsletter Full Website access (exclusive content) Resource Directories Certification Discounts Conference Discounts Share Groups Leaders Networking Group (team leaders) Planned Networking (introductions) Best Practice Surveys (team leaders)

Category Management Training Standards & Certification

Our 2 step Approach Steering committee… Sub-committee… lead with experience ensure diversity, remove bias create role & skills framework establish certification process Sub-committee… leverage cat man and educator expertise define levels of competency create framework to evaluate training 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.

Committee Members Committee Members Bob Wong Del Monte Foods Bob Samples Hormel Foods Brad Anderson Nestle Purina Craig Hodnett Dr Pepper Snapple Dan Strunk De Paul University Eric Hansen Johnson Controls Jeff Inman University of Pittsburgh Jon Troy Johnson & Johnson Ken Friedlander Abbott Nutrition Steve Zielonko Anheuser Busch Tom Bennett Colgate Palmolive Committee Members Dan Nosal Colgate Palmolive Frank Gambino Western Michigan Univ. Jeff Stachelek E&J Gallo Winery Jennifer Kraus Dr Pepper Snapple Joe Teller Swedish Match Kaycee Remick Kellogg USA Laura Lee Larson Wrigley/Mars Lisa Hobscheidt Hormel Foods Rui Zhou Abbott Nutrition Scott Peterson Del Monte Foods Steve Likes Coca Cola N. America

Roles & Skills

Relate Roles and Skills To Current Course Offerings

Develop a common language A Course The most discrete element of a curriculum often focused on a single category management skill Learning Programs A single course or a collection of courses that impart proficiency for a specific category management competency Learning Scorecard A matrix that identifies standards for measuring competency performance at specific experience levels for category management professionals

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

The Category Management Association Certification Program

Establish an organization Certification Evaluation Board (CEB) A business unit of the Category Management Association, established to objectively review and evaluate all industry course offerings and people CEB actions include: Grant certifications where standards have been met Deny when standards have not been met, but provide remedial steps Maintain records database

Certification Process For Individuals (Covers a 3 Year Period)

3 Certification Levels 10 Required Learning Programs

Certification Process For Individuals Certification Order Form Individuals Employees Personal Certification Credentials Current Resume Training History Current Job Description 2 page personal professional experience statement 3 Professional References Payment Certification Evaluation Board

Assessment & Record Maintenance Based on its evaluation, the CEB will certify an individual at the appropriate level on the Scorecard and return the certification to the individual Individual certification is a cumulative assessment of their experience meaning they are given credit for previous positions on the scorecard Record maintenance The CEB will also record the individual’s certification in the CMA database The CMA will maintain your records for a 3-year period time Individuals can authorize access to their records as necessary

What Is The Impact On The Industry We are currently certifying the following major trainers in the industry: CMKG ROI Learning Evolution Nielsen IRI We are in the process of scheduling certification for these training companies: Win Weber Associates The Partnering Group

Costs for an Individual’s Certification Initial costs An individual’s initial personal evaluation fee is $800 Covers all certifications and data maintenance for a 3-year period Renewal costs Renewal for an individual’s certification is $300 Covers an additional 3 years, including: New training programs completed Maintaining certification records Updating certification level

Certification Process For Company Training Programs

Certification Process For Programs Certification submission Both organizations and 3rd party vendors can submit their learning program(s) for assessment & certification Certification process The CEB will assess training curriculum, course materials and testing rigor Following an on-site visit, the CEB will provide a formal written review either granting certification or providing remedial action

Costs For Learning Program Certification Initial costs Certification evaluation fee is $8,000 3-year period Learning program certifications Pre-certified ”off-the-shelf” learning program ($200 each) Customized pre-certified ”off-the-shelf” learning program ($2,400 each) Customized, internal proprietary learning program ($4,000 each) Renewal costs The cost for renewing certification are as follows: Recertification for a comprehensive company training program will be $1000. In addition there will be a $ 100.00 charge to review and re-record each previously certified learning program. For all new learning programs certified the cost per learning program will be as above. The cost for recertifying people will be $300.00 each subsequent 3 year period.

Discussion

University Category Management Education Programs

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 Less than 30-45 hours of total category management instruction

It Is A New Day In Category Management Education… A new certification program has been announced that will govern the development of category management talent, industry training programs and instruction on college campuses. Current university programs are unlikely to qualifying students to receive an analyst certification upon graduation because they have insufficient depth and breadth of instruction according to the new Category Management Association (CMA) Certification Standards

Will Universities Change Given The New Certification Requirements? That is unclear, but we do know that we face 3 major challenges when considering category management education on college campuses: The revision and development of college programs takes time and resources. The schools currently teaching category management are predominantly state schools and curriculum change can take 2 years. We have a dearth of qualified instructors In most of these schools we still face issues relating to diversity and program scale

How Is Depaul University Different?

Why Is Depaul University Uniquely Qualified To Provide Category Management Solutions? Our students are unique and diverse Our Program was developed to conform to CMA Certification Standards Our full time faculty members are category management practitioners Our Cat Man Program is new part of the Center for Sales Leadership (CSL). We have a track record of developing successful programs . The CSL has become the largest most comprehensive center for sales in the country in just 5 years.

Our Vision… To properly prepare students for category management careers through an educational program that: Allows manufacturers and retailers to play an active role in curriculum development Ensures all students successfully completing the 3 course program will qualify for category analyst certification from the CMA. Provides our retail and manufacturing partners to secure mutual business benefit from the cases and business problems students complete.

We Have Size… We are the largest Catholic university and 8th largest private university in the nation 2008 DePaul University Division of Enrollment Management

Sales Center Student Populations DePaul University U of Toledo U of Washington Ball State W Michigan Illinois State U Conn Indiana Ohio U Dayton Selling Power Top University Sales Education Programs 2008

Amongst The Most Diverse Campuses in America “Princeton Review 2008 We Are Diverse… Undergraduate business enrollment of 4,719 Students Minority Students African American 5.0 % Asian-Pacific 13.8 % Hispanic-Latino 14.3% Native American 0.2% Multi-Ethnic 0.6% Other/Unknown 11.1% Total Minority 45.0% White Caucasian 55.0% Amongst The Most Diverse Campuses in America “Princeton Review 2008 2008 DePaul University Fact File Office of Institutional Planning and Research

New Program Curriculum BS in Commerce – Marketing Major – Sales Leadership Minor EFFECTIVE BUSINESS COMMUNICATIONS 2 Required Courses FUNDAMENTALS OF SALES & NETWORKING BUSINESS ANALYTICS & CREATING CUSTOMER VALUE SALES STRATEGY & TECHNOLOGY LEADERSHIP IN SALES ORGANIZATIONS THE SCIENCE OF RETAILING BUILDING FINANCIAL RELATIONSHIPS PRINCIPLES OF CATEGORY MANAGEMENT CASES IN CAT EGORY MANAGEMENT

Promoting Sales Education

The Depaul Category Management Track

Track Purpose Align 3 courses to provide students a comprehensive program to properly prepare catgeory management talent. Students will have 100 hours of instruction with hands on experience with: Real data The technologies of the day Current best practice in the field Students will earn an additional 20 – 50 hours experience through internships.

Our Faculty Is Experienced Daniel P Strunk: 20+ Years Experience Managing Director Center for Sales Leadership Member Category Management Association Committee Chair Category Management Association Certification Subcommittee Category Management Clients Served: Ocean Spray, R.J Reynolds, Kraft Foods, Con Agra Foods, Wrigley, Quaker Oats Laura Lee Larson Ed.D.: 20+ Years Experience Adjunct Faculty Member Member Category Management Association Certification Subcommittee Category Management Executive Experience: Wrigley, Miller Brewing, Diageo, Solo Cup, Warner Lambert, Bristol Myers, Kraft Foods Jacqueline Kuehl: 14+ Years Experience Adjunct Faculty Member Member Category Management Association Category Management Executive Experience: Don Foods, Acosta, Frito Lay

DePaul University’s Comprehensive Cat Man Track THE SCIENCE OF RETAILING PRINCIPLES OF CATEGORY MANAGEMENT Curriculum Certification CASES IN CATEGORY MANAGEMENT

Science Of Retailing Prof. Jacqueline Kuehl The Science of Retailing Retailer Objectives and Strategy Supply Chain Store Operations Nielsen Technology Category Management Process History and Business Merchandising & Promotion

Principles Of Category Management Dr. Laura Lee Larson Category Management Process Nielsen Category Management Technology Suite Category Review Mentors HQ & Store Visits Merchandising & Promotion

Cases In Category Management Prof. Daniel P. Strunk 2 Case studies from drug and grocery channels Student mentors Nielsen technology extensively used HQ & Store visits Executive review of case solutions

Category Management Track Manufacturer’s Provide The Science Of Retailing Support includes: Board participation In class lectures Mentors Internships HQ visits Financial Support Principles Of Category Management Cases In Category Management

Completion of the course track assures students certification All course relate subject matter to the competency requirements the Category Management Scorecard

Partners Make Better Hires We have effectively changed the college recruiting paradigm to: Provide continuous access to high-potential candidates Help build diversity Lower recruiting, training, and turnover costs Raise retention rates

Discussion