Category captains in «LENTA»

Basic principles of cooperation

WE ARE INTERESTED IN ATTRACTING Category Captains!

Category Captain is Lenta’s partner having the priority of category management in Lenta, as well as receiving all information about Lenta, required for this purpose.

Information about storees and category modifications plan

Lenta company standards and explanatory notesSales statistics

Results of marketing research

Joint research and experiments

Priority in giving recommendations on category modifications

WE ARE INTERESTED IN ATTRACTING Category Captains!

HAS HAD CONSIDERABLE WORK EXPERIENCE IN THE CATEGORY

HAS BEEN LENTA’S LOYAL SUPPLIER

SHARES AND IS PREPARED TO ACHIEVE LENTA’S GOALS IN CATEGORY PROMOTION

IS PREPARED TO INVEST INTO LENTA CATEGORY PROMOTION

Being a category captain implies serious responsibility. That is why Lenta category captain status can only be given to a supplier after multiple negotiations and under the condition that he meets the following basic requirements:

CATEGORY CAPTAIN AIMS AT GENERAL PROMOTION OF CATEGORY IN WHOLE

CATEGORY GOAL: to provide for like4like category turnover gain exceeding the one provided by the market’s natural growth rates

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Category turnover growth rates in "Hypermarkets" channel, %

Like4like category turnover growth rates in Lenta, %

CATEGORY CAPTAIN’S INSTRUMENTS

ASSORTMENT

LAYOUT PRINCIPLES

NAVIGATION

TRADING EQUIPMENT

???!!!

CAPTAIN USES ACTUAL AND RELEVANT DATA

Category in whole shall be analyzed

Analysis of the results of the existing customer

surveys

Analysis of the results of target customer surveys

Analysis of retail audit data

Analysis of consumer panel data

Analysis of Russian retail networks’ experience

Analysis of foreign companies’ experience

Recommendations

SKU of all suppliers shall be analyzed

THE LIST OF PARAMETERS FOR CATEGORY ANALYSIS SHALL BE DETERMINED IN THE COURSE OF NEGOTIATIONS

Depending on the project tasks, data structure of may change

RECOMMENDATION IS GIVEN IN THE FORM OF SPACE PLANS…

Before

Sample space plan in category “Water”

Table and drinking water together

Sparkling and non-sparkling water mixed

Brands in mixed volume are placed in different sections

Expensive and cheaper brands mixed

Shelf navigation is missing

Big packages occupy much shelf space

… WITH DETAILED DESCRIPTIN AND SUBSTANTIATION OF CHANGES

After

Table and drinking water is placed in different sections

Shelf navigation in place

Brands within one segment are placed according to prices

Sparkling and non-sparkling water is

separated and supplied with

proper navigation

Big packages are placed only on

palletsWithin a segment and brand various package

volumes are placed next to each other

One of the proposals for outlay optimization. EXAMPLE! NOT REALIZED YET

Change of assortment structure per segmentsChange of goods layout principlesChange of navigationChange of trade equipmentThe list of SKU offered for withdrawal (with

consideration of new products, underdeliveries, etc.)The list of SKU offered for introduction to the goods

range (with substantiation)Space plans and schemes showing the changes

offered

RECOMMENDATIONS THAT WILL NOT BE CONSIDERED

If they unreasonably infringe upon the interests of the other category and/or private brand suppliers

If data not relating to the considered category, channel, time period, region are used for substantiation

If they do not promote the category’s goals

If they do not correspond to Lenta’s standards

GENERAL PROMOTION OF CATEGORY IN WHOLE IS THE MAJOR ESTIMATION CRITERION!

ALL PROJECT PARAMETERS ARE GIVEN IN ONE DOCUMENT

Terms and definitions

Goal of the project

Stores where the project is realized

Stages of the project

Representatives of the parties, involved in the project

Rights and responsibilities of the parties

Cost of services and payment order

Data exchange and recommendation requirements

Data confidentiality

Liabilities of the parties

Miscellaneous conditions

Category Captain Agreement

CAPTAIN IS AWARE OF ALL THE REQUIREMENS HIS RECOMMENDATIONS MUST MEET

PROJECT APPROACH TO COOPERATION

time

I-st quarterII-nd quarter

III-rd quarter IV-th quarter

Setting goals and tasks, coordination of preliminary timing and budget of the project, coordination of the order of interactions. Selection of Captain.

Development and coordination of the plan for introduction of the recommendations

Estimation of the final results of the project, setting goals and tasks for the next project

Estimation of the first results of the project

Introduction of recommendations in stores

Carrying out the analysis, development of recommendations

Check of recommendations, making corrections, approval of final decisions

Suppliers apply to Commercial Service, to their category manager

Lenta together with Category Captain make resume of the project

Timing of the project greatly depends on category goals and comprehensiveness of the offered changes

Tasks Members Persons in charge

Timing Budget Performance evaluation

MOST STAGES OF THE PROJECT ARE REALIZED IN CLOSE INTERACTION BETWEEN CAPTAIN AND LENTA

Stage Members

I. Definition of goals, tasks and restrictions per category

II. Primary briefing: goals- setting, discussion of tasks, coordination of general conditions, development of general plan of actions

III. Development of detailed plan of actions, timing and budget of the project per category

IV. Coordination of the offered plan, budget, timing with Lenta, approval of project design

V. Collection and analysis of data, preparation of recommendations for the first reading

VI. Analysis of the offered recommendations, preparation of the list of corrections

VII. Making corrections, preparation of the approved list of recommendations

VIII. Approval of recommendations, development of introduction plan

IX. Introduction of the recommendations accepted for work

X. Estimation of the project’s efficiency, resume of the project

XI. Starting the new project

Captain

Captain

Captain

Captain

Captain

Captain

Captain

Captain

DISTRIBUTION OF THE ROLES OF CS AND MD IN LENTA

Commercial ServiceMarketing

Department

Setting goals and tasks, definition of restrictions

Estimation of recommendations

Decision-making

Submission of data

Checking the relevance of recommendations

Estimation of commercial efficiency

Planning of target investigations

To receive category captain status in Lenta, please apply to Commercial Service Manager of your category !

Selection of category captain, determination of cooperation terms

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-15%

-10%

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25%

October November December January

Tooth pastes

Tooth brushes

THE ACHIEVED RESULTS

LIKE4LIKE SUB-CATEGORIES GROWTH DYNAMICS, %

Data provided by SAP BW, 2006 – 2008 (sale volumes of the stores that worked since 2006 are compared month by month, year by year)

Рекомендации капитана внедрены

Alexey.Orlov@lenta.com

THANK YOU FOR YOUR KIND

ATTENTION !