Cati2005 Christophe Pirotte, Rok Sunko Retailer Manufacturer Cooperation
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The retailer – manufacturer cooperation – is win-win possible? Mojca Avšič, Market research manager, Mercator Christophe Pirotte, FMCG specialist, CATI Rok Sunko, project manager, CATI 25/05/2005
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Transcript of Cati2005 Christophe Pirotte, Rok Sunko Retailer Manufacturer Cooperation
The retailer – manufacturer cooperation – is win-win possible?
Mojca Avšič, Market research manager, MercatorChristophe Pirotte, FMCG specialist, CATIRok Sunko, project manager, CATI
25/05/2005
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Category management for ...
= hyped trend?
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... achieving greater customer satisfaction
Optimise categories /
assortments according
to consumers’ wishes
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Retailer – manufacturer cooperation
Satisfy the consumer
Based on consumer data
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? IS THIS ENOUGH ?
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Satisfaction on level of ...
Satisfy the CONSUMER
or
the HUMAN BEING ?
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... consumption or ...
Consumption phenomenonenhanced by
- marketing activities
- promotions
- advertisements
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... human being
Relating to needs of INDIVIDUAL
on
Emotional level
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The path to consumption ...
HH or retail data enough?(consumption)or
work on whole path
Usage
Loyalty
Recognition
Consideration
Experience
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... is base for understanding the human being
go-to-market
or
go-to-human being
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Illustration: using only purchase data can be misleading
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Trend 1:Assortment key source of differentiation
Differentiation from
discounters
Selecting the right
SKU’s
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Effect of private labels and exclusive
brands
Prediction ...
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What will happen when purchase
power increases?
Top 1/3 consumers according to revenue
Low 2/3 consumers according to revenue
... and simulation are needed
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0% 5% 10% 15% 20% 25% 30%
Private labels
Other brands
Laško
Bandidos
UnionLaško Club
* BPI (Brand Performance Index) source: PGM 2004 1st wave
Difference in BPI* Mercator vs. Spar
Average consideration of the brand on the market
Smile
Joint consideration of
Smile, Laško Club and Bandidos is close to Laško’s
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0% 5% 10% 15% 20% 25% 30%
Private labels
Other brands
Laško
Bandidos
UnionLaško Club
* BPI (Brand Performance Index) source: PGM 2004 1st wave
Difference in BPI* Mercator vs. Spar
Average consideration of the brand on the market
Smile
Joint consideration of
Smile, Laško Club and Bandidos is close to Laško’s
“Only big brands count” principle is not enough
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Trend 2: Shop formats are a necessity
Re-think assortment
according to
environment
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• Younger population:• Locations close to Universities, schools, in the centers of
the town
• Old people:• Population is aging!
• Countryside:• villages in less developed parts of SEE
• Large packagings, price more important, but they are influenced by TV commercials
Rise of new retail formats for specific segments
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Retailer – manufacturer meet on the same platform
Mercator Data Platform Suppliers
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YES...
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...BUT!!
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...
• Partnership:• unexploited source of sustainable competitive
advantage for BOTH retailer and producer• missing-out opportunities
• CM is more than just satisfying consumer... It is about human-being
• It is also about better understanding of both parts
• Size (as usual) matters
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Thank you
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Product sorting – Focus groups– Understanding categories, subcategories– Brand position / competitors position
Category definition
Category performance
measures
Category strategies
Category tactics
Category role
Category assessment
Plan implementation
PGM – Assess size/ target segment of categories– Cross category analysis
SWOT analysis – PGM – Protocol analysis– SWOT per category– Consumer profiles / purchase behaviour
PGM – Ad hoc research– Optimal perfomance per category– Targeted research to support goal
PGM– Category trend analysis (over time and
over markets)
PGM – Price testing – Advertising research– Promotion (which products, which types)– Portfolio analysis / price elasticity
No research– Retailer draws up a Tactogram
Category review
PGM– Performance
monitoring– Category plan
modification
Solution
