webinar #1 - jan 12 @ 16.30 cet - 2020

CATEGORY MANAGEMENT YESTERDAY, TODAY & TOMORROW - 2020 Webinar #1 - Jan 12 @ 16.30 CET

WELCOMEDeclan Carolan

Co-Chair

ECR Community

ECR COMMUNITY

1. ECR RUSSIA

2. ECR IRELAND

3. ECR POLSKA

4. ECR AUSTRIA

5. ECR FRANCE / Institute du Commerce

6. ECR CZECH & SLOVAKIA

7. ECR ITALY

8. GS1 SWITZERLAND

9. ECR UK / IGD

10. ECR SPAIN

11. ECR GREECE

12. ECR CYPRUS

13. ECR SWEDEN

14. ECR PORTUGAL

15. ECR CROATIA

16. ECR ROMANIA

17. ECR FINLAND

18. ECR KAZAKHSTAN

19. GS1 MEXICO

20. Logyca COLOMBIA

21. ECR GERMANY

22. ECR CHINA

23. ECR GUATEMALA

24. ECR RETAIL LOSS GROUP

25. AIM

26. EuroCommerce

3

ECR Community is the global not-for profit association for all ECR organisations.

CATEGORY MANAGEMENT YESTERDAY, TODAY & TOMORROW - 2020

Download at www.ecr-community.org

CATEGORY MANAGEMENT YESTERDAY, TODAY & TOMORROW

CONTENTS1. Insight Papers

Highlighting how category management & shopper marketing can be drivers for growth.

Keynote Paper (Harris & Demeulenaere)

Covid-19 Learnings (Czapski, Ciancio & Harris)

Social Science of Shopper Marketing (Hughes)

2. ECR Community Initiatives

Category management is a cornerstone activity in ECR associations.

ECR / GS1 Germany

ECR / GS1 Italy

ECR France

3. Current Practices

14 case studies from 9 different countries

Template used to facilitate context & comparison

4. Technology in Category Management

5 articles illustrating the impact of effective technology

dunnhumby

Yagora

IBM


LAUNCH WEBINAR – 24 NOV 2020

• Category Management 1987 to 2010

Bringing the Consumer into Retail Marketing

• Category Management in Omni-Channel Era 2010 - 2020

Bringing the Shopper into Retail Marketing

• The Future

Integrated Consumer and Shopper Marketing

• Insights and Learnings from the Covid-19 Pandemic

• The Role of Category Management in times of crisis

Dr. Brian Harris

Luc Demeulenaere

David Ciancio,

dunnhumby

Wilhelm Hoffrogge,

Hoffrogge

View at www.ecr-community.org

3 Webinars to be conducted (Jan, Feb, March)

Focus on different aspects of the Report

Allow for manageable bite-sized chunks and in-depth understanding

Create a global network of Category Managers

#ECRCatManNetwork

o Webinar 1 = 12 Jan @ 16.30 CET

o Webinar 2 = 16 Feb @ 16.30 CET

o Webinar 3 = 16 March @ 16.30 CET

#ECRCATMANNETWORK - WEBINARS

#ECRCATMANNETWORK WEBINARS

Webinar 1

12 January 2021

16:30CET

Webinar 2

16 February 2021

16:30CET

Webinar 3

16 March 2021

16:30CET

Education

& Insight

The integrated consumer shopper

approach in Category Management

& Shopper Marketing

Building a Consumer-Shopper integrated

segmentation to develop a category

vision for the category and the brand

How the retailer will win the consumer

shopper segment the relevant

shopping missions

Casesdunnhumby – Metro, Canada Yagora - Jack Links, Germany

Hoffrogge - Rewe & Coca Cola,

Germany

CasesRainbow, China Barilla, Italy Musgrave Retail Partners Ireland

ECR CommunityECR France ECR Italy ECR Germany

Q&A Q&A Q&A

Register at www.ecr-community.org

The integrated consumer- shopper approach

in Category Management & Shopper Marketing

TODAY’S WEBINAR

Dr. Brian Harris Luc Demeulenaere

Scanning

Space Management

Category Management

Next GenerationStore Designs

ShopperMarketing

2011

Shopper-FocusedCM

CollaborativeCRM

1975

1990

1985

2000

1993

2008

2005

2015

2020

Omni-ChannelMarketing

IntegrationInnovation

Personalization

Evolution of Retail Marketing

THE DRIVING FORCES OF

CHANGE


CATEGORY MANAGEMENT

YESTERDAY

Category Management 1987 to 2010

Bringing the Consumer into Retail Marketing


GLOBAL ECR BEST PRACTICE

1997

Europe

1998

South America

1995

USA / North America


Category Role

Plan Implementation

C

ate

gory

Re

vie

w

Category Definition

Category Scorecard

Category Assessment

Category Strategies

THE

PROCESS -

8 STEPS

Pricing

Shelf Presentation

Promotion

Assortment

Category Tactics


CATEGORY MANAGEMENT

TODAY

Category Management in the Omni-Channel Era

2010 to 2020

Bringing the Shopper into Retail Marketing


Scanning

Space Management

Category Management


ShopperMarketing

2011

Shopper-FocusedCM

CollaborativeCRM

THE SHOPPER COMES INTO FOCUS

1975

1990

1985

2000

1993

2008

2005

20152020


NEW CONSUMER & SHOPPER VALUE DRIVERS

Traditional Value

Drivers

New Value

Drivers

Source: Deloitte Food Value Equation Survey 2016

Taste

Price

Convenience

Health & Wellness

Product Safety

Social Impact / Ecology

Experience


MILLENNIALS LARGESTSHOPPER SEGMENT

New Expectations:

•Experiences

•Convenience

•Quality


THE NEW RETAILING PARADIGM

• E-Commerce

“Click” Shopping

• Next Generation of

Discounters

• Integrated

“Click-Brick”

OmniChannel

Shopping


Scanning

Space Management

Category Management


ShopperMarketing

2011

Shopper-FocusedCM

CollaborativeCRM

THE NEXT WAVE?

1975

1990

1985

2000

1993

2008

2005

2015

2020


IntegrationInnovation

Personalization

CATEGORY MANAGEMENT

TOMORROW

The Future -

Integrated Consumer and Shopper Marketing


INTEGRATED CONSUMER-SHOPPER APPROACH

• Takes retailer-manufacturer collaboration to a higher level

• Increases both manufacturer brand and retailer brand equity

• Enables category innovation and differentiation to be key outputs and drivers of the category growth and development


MAIN FOCUSECR Consumer & Shopper Journey provides framework for consumer and shopper insights and understanding segment behavior which drive Category Management & Shopper Marketing decisions


Holistic profile

WHY INTEGRATING THECONSUMER & THE SHOPPER?

Bring insight on how consumers make choices along the consumer-shopper journey

Connect consumer insights with shopper insights to build a value driver framework:

Find the ground material for

Building a growth vision with current and future generations

New product development and innovation

Understand the buying power dynamics across consumption universes and related product categories

Build the “collaborative” value driver language to allow differentiated Joint Business Plans between product manufacturers and retail-solution holders (channels, store formats, E-commerce solutions, on-the-go stores,..)

Provide the foundation for growth platforms creation, Shopper Marketing and Category Management


SOME BUSINESS QUESTIONS ANSWERED IN THIS SESSION?

- Is the traditional Category Management 8-step model surviving in the future?

- Is the Purchase Decision Tree the same one for every store?

- How should we address category strategies & tactics (like Pricing, Promotions, Assortment) in the future?

- Who owns the Shopper Marketing strategy for our brand, and what is the role of Category Management in this context?


INTEGRATED BRAND EQUITY MODELS

• Leverages the value of consumer and shopper insights

• Deploys these insights across an omni-channel structure that captures shopper decision making in either in-store or on-line mode

• Incorporates the Consumer and Shopper Journey as a roadmap for understanding consumer and shopper needs and behavior across different channels


INTEGRATED BRAND EQUITY

COLLABORATION MODELS

Source: Demeulenaere & Associates


EXAMPLE SHOPPER & CONSUMER SEGMENTS LIFESTYLE TOTAL CONSUMPTION UNIVERSE

FUTUREOLD GENERATION

HIGH BUYING

POWER

LOW BUYING

POWER

11%

PREMIUM

UPCOMING PREMIUM

FAMILY

NEW PREMIUM

ENGAGED

TRADITION

FINANCIAL PROBLEM

EXAMPLE SHOPPER & CONSUMER SEGMENTS LIFESTYLE CATEGORY X UNIVERSE

FUTUREOLD GENERATION

HIGH BUYING

POWER

LOW BUYING

POWER

PREMIUM

UPCOMING PREMIUM

FAMILY

NEW PREMIUM

ENGAGED

TRADITION

FINANCIAL PROBLEM

Health

Fitness nutrition

Enjoy new

Health

Kid’s taste

Health

Ecologic footprint

Quick & good

Opportunistic & surprise

Health

Taste

Enjoy with friends

Enjoy new

Reliable quality

Well known

OK for my budget

Taste

Category X

A top-down consumer insight

Across consumption universes

Towards category consumer drivers


PRICE NEW AND INNOVATIVE

SERVICE EXPERIENCE

IN STORE & ONLINE

STORE & ASSORTMENT

EXPERIENCE

SHOPPER EXPERIENCE EXPECTATIONS FOR THE

SHOPPING MISSIONCONSUMER NEEDS

FINANCIAL PROBLEM

SEGMENT

UPCOMING

PREMIUM

Integrating Consumer & Shopper

Insights builds the CS Journey Insights

CATEGORY MANAGEMENT CREATES DIFFERENTIATION BY DELIVERING CROSS-CATEGORY SOLUTIONS AND SHOPPING EXPERIENCES


example

THE SHOPPING MISSION – LINKING CONSUMER SOLUTION NEEDS AND SHOPPER BEHAVIOR➢Retailer equity to embrace consumer value drivers

➢Shopping experience response versus expectations on the driving categories of the shop mission

➢Differentiating role of the categories


NEW RESEARCH MODELS TO

DEVELOP THESE NEEDED

INSIGHTS

- Hybrid Household Panel combining the ‘what’ behavior with the ‘why’

Omni-channel behavior tracking

Combined with insight questions per step in the Consumer-Shopper Journey

- Social Media scraping connecting the 5 consumer W’s to identify new trends and new growth platforms on the go:

CS-segments (Who) with the Why, What, Where, When consumed

- ‘Connecting the Dots’ – constructions in Loyalty card db, Hybrid household panels to understand the growth potentials

Benchmarking ‘within’ retailer-store behavior versus the totalmarket by CS Segment/by category/by Channel/…

- Connecting Machine Learning with CS segments Value drivers to deepen the 1-1 insight for Artificial Intelligence

- Enriched assortment algorithms to work store-by-store segment product value propositions


SOME RECOMMENDATIONS FORRETAILERS

oAchieve deep understanding of consumer-shoppers, their value drivers and behavior across all channels

oLeverage insights to develop and implement superior “category solutions” to the retailer’s most important consumer-shopper segments

oBuild consumer-shopper understanding to transition from mass marketing to mass customization to 1-1 personalization using Artificial Intelligence tools

oDevelop a strategic multi-source data intelligence masterplan to connect the various sources of customer insights


SOME RECOMMENDATIONSFOR MANUFACTURERS

• Update New consumer growth drivers for the brand and integrate in a quantified value consumer-shopper segment category vision model; to capture today’s and tomorrow’s purchase power from the market

• Develop new levels of collaboration to:

• Understand how brand segments connect with retailer segments

• Gain Category Management insights for these segments along the Consumer and Shopper Journey

• Develop a strategic multi-source data intelligence masterplan to connect the various sources of consumer-shopper insights


CURRENT PRACTICES IN

CATEGORY MANAGEMENT

14 Case Studies from 9 Countries


CATEGORY MANAGEMENT FOCUS AREAS

1. Redefining categories to reflect new consumption habits, lifestyles and expectations

2. Integrating Category Management into the broader Consumer and Shopper Journey construct

3. Applying Category Management processes in e-Commerce channels

4. Joint brand building collaboration between retailers and manufacturers

5. Using comprehensive multi-source consumer and shopper data sets enabled by AI and related technologies

6. Expanding use of Category Management in other channels (e.g. DIY and Pharmacy) and in new markets


JOINT BRAND BUILDING COLLABORATION BETWEEN RETAILERS AND MANUFACTURERS

Beer (Italy)

Dairy and Frozen Foods (Canada)

Soft Beverages (Germany)

Using Blockchain to promote food category

quality and implement Carrefour’s Food

Provenance Program

Developing a Category Business Plan to recover

declining sales in the Beer category in the

hypermarket and supermarket channels in Italy

Applying a collaborative approach driven by

shopper insights to create new growth in the

Dairy category in Canada

Individual Outlet Category Management on a

Big Scale - optimization of space, assortment

and placement in the beverage category using

smart software solutions and dialogue -

oriented collaboration in Germany


EXPANDING USE OF CATEGORY MANAGEMENT IN NEW CHANNELS AND IN NEW MARKETS

Fresh Fruit (China)

Infant nutrition (Greece)

OTC Pharma (Brazil)

Using Blockchain to promote food category

quality and implement Carrefour’s Food

Provenance Program

Creating & implementing a Destination Role

Category Business Plan to create a strategic

competitive advantage for Fresh Fruit category in

China resulting in 25%+ increases in sales & profit

Developing and implementing an Infant Nutrition

Category Business Plan to maintain category

growth and development in the Brazil Drug Store

/ Pharmacy channel

Using Category Management principles to

develop an integrated shopper solution for

three interrelated OTC categories in the Brazil

Drug Store channel


Highly confidential

Strategic Category Leadership

Highly confidential

Highly confidential

Background

Objective: design a new process to do strategic category leadership, leveraging multiple

data sources and vendor support

Metro has grown by differentiating on Fresh

Increasing challenge for a Conventional banner to differentiate from Discount in Grocery

Category Managers lack time, and are very focused on promotional execution: no space for a deep, 360°approach to create big and bold changes

Highly confidential

Strategic Category Leadership approach

QUEBEC: Project Maverick

• Separate team created

• Focus on reviewing all Grocery categories by 2020

• dunnhumby supports the process and provide the tools

• Vendor participation

Highly confidential

Project’s Pillars:

• Innovation

• Optimization

• Shopping Experience

• Value Perception

Project Maverick vision: transform entire Grocery department by 2020

Aisle 1

analysis

Aisle 1 Re-

invention

deployment &

Aisle 2 analysis

Aisle 3

analysis

Aisle 1

measurement

Aisle 2

Re-invention

deployment

Aisle 3

Re-invention

deployment

Process design

Maverick project kick-off

Aisle 2

measurementAisle 4

analysis

Highly confidential

360° approach using customer and market data

Highly confidential

Clear process & governance has enabled solid execution

STEERING COMMITTEE

• COO – Quebec division

• SVP, Metro QC banner

• VP Merchandising

• VP Operations

• CMO

• SVP, Procurement

Highly confidential

• Assortment rationalized

• Value format offering developed

• New sections created

• Clear signage implemented

+ sales uplift

Example actions and results: Dairy Aisle

“Process is clearly customer-centric, partner approach – open discussion, open to making major changes. Congratulations!”

“It’s super to see that decisions are purely based on data, and not on emotional or pre-conceived ideas"

“The overall process has set this Maverick approach as a best practice for retailers in Canada"

“We see this is be a new way of working for Metro. You were able to integrate and translate a lot of information. Congratulations and

thanks for sharing the future planogram with us! "

Supplier #1

Supplier #2

Supplier #3

Supplier #4

Highly confidential

Merci & Thank you

ECR Case Study

China / Rainbow Supermarket

Fresh Fruit Category

Your Partner in Business1-2-21 v6.0

Bruce Starts

Rainbow Scorecard: Fresh Fruit Category

Sales and Profit

2018 2019

Sales +8.2% Sales +28%

Profit +1.2% Profit +25%

Bruce Ends

SWOT, Competitive Store Visits - YONGHUI Stores, FRESH FRUITS

SWOT, Competitive Store Visits – Walmart Store, Fresh FRUITS

SWOT, Competitive Store Visits - Vanguard Stores, Fresh FRUITS

Destination Fresh Fruit Category, Sub-categories

Promotional Specials

Rotation of Berries, Grapes

Core Products

Seasonal Fruit Rotation

Refrigerate & Cut Fruit

“Must Buy”

“Healthy Berries”

“Everyday Value”

“Fruit Festival”

“Really Fresh”

“Must Buy”

“Really Fresh”

“Healthy Berries”

“Everyday Value”

“Fruit Festival”

What were the major barriers faced during the project?

• Transitional resistance to any changes



• Resistance to making assortment reduction




• The retailer needs to be hungry for this new way of doing

business.




• The retailer needs to be hungry for this new way of doing

business.

• The need to be earning credibility during the process.

What key advice would you offer?

• Do not wait for everything to be perfect and in place to

get started.

What key advice would you offer?

• Do not wait for everything to be perfect and in place to

get started.

• What is absolutely needed is a consistent commitment by

senior management.


ECR COMMUNITY REPORTS

Most Efficient Functionalities to Improve User Experience on Food e-Retail Websites

Institute du Commerce / ECR France

NEXT STEPS

Building a category growth vision from integrated consumer- shopper segmentations

Shopper Marketing as the umbrella for Category Management in a collaborative Business Plan

The Consumer & Shopper Journey to encompass all consumer and shopper behaviour across all channels (in-store and digital)

AI and multi-source database analytics will unlock the insights (“connect the dots”) for true competitive advantage


#ECRCATMANNETWORK WEBINARS

Webinar 1

12 January 2021

16:30CET

Webinar 2

16 February 2021

16:30CET

Webinar 3

16 March 2021

16:30CET

Education

& Insight

The integrated consumer shopper

approach in Category Management

& Shopper Marketing

Building a Consumer-Shopper integrated

segmentation to develop a category

vision for the category and the brand

How the retailer will win the consumer

shopper segment the relevant

shopping missions

Casesdunnhumby – Metro, Canada Yagora - Jack Links, Germany

Hoffrogge - Rewe & Coca Cola,

Germany

CasesRainbow, China Barilla, Italy Musgrave Retail Partners Ireland

ECR CommunityECR France ECR Italy ECR Germany

Q&A Q&A Q&A

Register at www.ecr-community.org

To bring the right actionability into our integrated consumer-shopper based customer centricity, a segmentation concept needs to support our insights framework. We are all moving from mass marketing into a future of 1-1 offers, developments which will be made increasingly possible through Artificial Intelligence applications. These applications require a multi-source insight basis.

In this second webinar we explain how a segmentation model is the basis for working your category and brand vision for growth, following the lines of a basic multi-source insight framework.

It not only helps to maximize your growth potential, but also paves the way for building 1-1 offers facilitated with AI technology.

ECR CATEGORY MANAGEMENT NETWORK

#ECRCatManNetwork

A global network to share Category Management knowledge and experience.

Track latest relevant technologies

Focus on effective collaboration

Highlight current practices & case studies


webinar #1 - jan 12 @ 16.30 cet - 2020

Documents