Many Category Managers and Account Managers in the FMCG world learnt their category management craft by watching others. Few have been trained or seen what best practice category management looks like. This infographic describes what best practice category management looks like.
For the 3 core elements of Category Management here is the best and worst:
BEST PRACTICE CATEGORY MANAGEMENT RANGE
The Worst – New products are created by NPD and presented to the buyer with no rationale, or consideration for one in and one out.
The Best – Range Reviews have a sales target to achieve and are evaluated against that target. New products are driven by shopper research and some innovation. Launched with targets considering the 3 legged stool of the Shopper, the Supermarket and the Supplier, and evaluated against those targets.
BEST PRACTICE CATEGORY MANAGEMENT AVAILABILITY
The Worst – Suppliers measure their performance against service level into depot.
The Best – Availability begins with understanding substitutability for each sku and on-shelf availability.
BEST PRACTICE CATEGORY MANAGEMENT PROMOTIONS
The Worst – Promotions are the same as last year.
The Best – Return on Investment is understood for each promotion and the plan as a whole. Knowing how much is invested and what is returned from that investment, with tweaks being made to improve the return for the 3 legged stool.
To measure your Category Management skill download this competency framework www.makingbusinessmatter.co.uk/blog/competency-framework