Category Management at a global retailer

Client Situation

  • Rapidly growing retailer expanding in Central European markets against well established strong leading multi-national competitors.
  • Local category management capability below western levels and category assortments significantly influenced by branded suppliers and local store managers.
  • Own brand underdeveloped and low sales participation.
  • Buyers driven by profit margins and the process of range construction is inconsistent from category to category.
  • Extensive ranges exhibit many gaps and product duplications.
  • No sharing of knowledge or capability between country buying teams
  • Our Approach

    • Developed set of western style processes and skills enabling buying teams to construct customer focused ranges reflecting the brand’s core purpose and value proposition thus better satisfying customer choice.
    • The category management hothouse workshop was developed and launched to all category buying teams across the Central Europe region.
    • Category management teams reviewed target customer; as-is range vs benchmark competitors using customer decision trees to identify gaps & duplications; defining categories by product attributes.
    • Reviewed layout & merchandising to develop a plan & implementation timeline for to-be ranges

    Business Benefits

    • Great ranges combined with Good Better Best pricing contributed to market leadership.
    • Category management planning led to reduced buying costs of 5-15%.
    • European approach successfully applied in Asia.