Category: Tactical Analysis

Category Management Analysis: Are Your Brands “Over” or “Under” Developed?

by Sue Nicholls, Category Management Knowledge Group

Category Management Analysis

As a category manager working for a retailer, you may have heard  “You are underdeveloped in Brand X or Segment Y in the category, and there’s an opportunity for you to grow in this brand or segment”.  As a category management analyst or sales person working for a supplier, you may have heard “Your retailer is underdeveloped in Brand X, and there’s an opportunity for this retailer to increase development in our brand”.  In both of …

Category Management Training: There’s Nothing “Fair” About a “Fair Share Index”

by Sue Nicholls, President, Category Management Knowledge Group

In today’s world, there is much emphasis on deriving effective and strategic insights in category management.  With all of the incredible data sources available to both retailers and suppliers, there are certain measures that are consistently used to derive these insights.  For some of these more commonly used measures, there’s a tendency to generalize the interpretation of the numbers, or not scratch below the surface and think about what the numbers really mean.

One example of this is “index”, which …

Category Management Training: Dissecting Baseline and Incremental Sales

Category Management TrainingIn last week’s blog, my category management training tip talked about the need for category management, sales and marketing professionals to have the skills to drill through basic data to move to insights, and then determine the recommended changes to drive action.  This approach helps in making more strategic day-to-day business decisions, through the ability to quickly pinpoint the business issue or opportunities, and then make changes using the tactics.  We reviewed some of the measures and benchmarks that should be …

Category Management Training: Drilling Through Data

Category Management TrainingCategory management, sales and marketing professionals should know how to quickly drill through data to move to insights, and then determine the recommended changes to drive action.  This will result in maximum efficiency and effectiveness of using some important category management data sources in day-to-day business decisions. Having the ability to do this is not all that difficult.  It just requires a good understanding of the data sources that are being analyzed, and some basic category management training on how to …

5 Category Management Opportunities in Assortment and Shelving

Category Management StrategyCategory Management teams in consumer packaged goods companies spend much of their time completing efficient assortment and shelving projects, both internally and for their retailers.   As the retail landscape continues to change, , so should the processes, practices and training that the category management team needs to order to provide added value both internally and with their retail partners.   With the summer season on us, and possibly a bit more time on our hands before the busy fall, it may be time to define some …

Measuring and fixing distribution gaps can lead to increased sales & profit!

A big opportunity for many retailers and suppliers is to “fix” their distribution on currently listed items – we spend so much time doing efficient assortment analysis, when sometimes the biggest and easiest opportunities lie within products already carried at the retailer!  Distribution data relates to the availability of the item across a specific geography.  There are two different options that you may have available in your data to measure the availability of items as a measure:

1.  % of stores carrying: 

Based on # of retail outlets, or store count, in the retail universe
Calculation:  # …

Fair Share Index (Are you using it correctly?)

Fair Share Index (FSI):
Fair Share Index

There is a great analytical technique used in category management called Fair Share Index or “FSI”, which will allow you to compare $ share to tactics shares (like share of shelf, share of ads, share of display, share of items).  But it’s also one that can commonly be misinterpreted.

FSI Measure:

Calculation:  Brand or Segment Tactic Share ÷  Brand or Segment $ Share

(Tactic share examples are “Share of Shelf”, “Share of Ads”, “Share of Items”, “Share of Display”, etc.).

Example:–       Segment #1 …

Category Management Series Tip #16: The 4 P’s

Product, Placement, Pricing and Promotion.  Each of these P’s influences volume and share within a brand or category. They are the key drivers.

The 4 P’s need to be monitored, in order to understand how they impact volume growth or decline within a brand or category. It’s really about Putting the right product in the right place, at the right price, at the right time.

For suppliers, the 4 P’s tie in with the Marketing decisions under the supplier’s control that can affect …

Category Management Series Tip #12: Space Management: Is It Just For Space Management “Tekkies”?

Do sales, marketing and category management professionals need to more strategically understand the shelf, or should it be left to space management professionals, shelf analysts and  planogrammers?    Unfortunately, many marketing, sales and category management professionals think space management is not really their concern. Leave it for the “shelving experts”, right? Wrong!

In this tip, I walk a few basics about space management that will hopefully entice you to want to learn more (if you don’t already know). Not from a technical perspective, but from a strategic perspective. If you are involved with innovation, category …

Category Management Series Tip #11: The Science and Art of Efficient Assortment

SKU rationalization has been a big initiative for many retailers across the globe.  There have been multiple studies over the past decade that show that reductions in assortment do not necessarily reduce customer visits to the store, and and sales may remain stable.  Many retailers have taken this to heart, and have already, or are currently, dramatically reducing assortments across categories by eliminating underperforming brands and items.  And some are realizing they may have gone too far with their reductions, and are bringing items back in.

So what’s the problem?  …

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