Agile Category Management: Accelerating the Category Decision Making Process
What if grocery stores are no longer organized by food category … 2
… but by health needs or diet preferences? 3
Do stores look less like this? 4
And more like this? 5 Source: Kantar, retailer website
Or this? 6 Source: Kantar, retailer website
On top of category lines blurring, big brands are getting disrupted by challenger brands and are often slow to respond to new trends The “natural” beauty After 100 years, AS AMERICANS TURN AWAY FROM SODA, industry is on the rise the shaving CARBONATED WATER because we’re scared industry is finally BECOMES A MULTIBILLION- of chemicals being disrupted DOLLAR INDUSTRY Customer mistrust is so bad now that even huge beauty companies want more How Target is regulatory oversight How White Claw and hard seltzer getting more Is a Revolution Finally craze are taking on DTC brands to Coming to Feminine Care? beer – and taking sell in its store A flurry of fashionable fem care over America startups are taking aim at Tampax 7 Source: The Daily Beast, CNBC, CBS News, Business of Fashion, Digiday
So What? 8
We have to reevaluate how shoppers navigate the store New Navigation: Classic Modern Trade: Targeted UP-DOWN by mission RODEO by aisles Enter Enter Enter Enter CLICK & COLLECT NETFLIX BINGE OFFICE LUNCH WEEKLY TOP-UP 9 Source: Kantar
…and the online experience (Illustrative Example) Fulfilment Physical Store Ship to Home Grocery Delivery & Pick-up Model Trip Type: Trip Type: Trip Type: Occasion: Occasion: Occasion: • Regular • Monthly • Weekly • Indulgence/Treat • Snacking • Weekly Category item fill-in Stock-up stock-up meal/lunch Definition & • Entertainment • New product planning • Special • Regular item Segmentation discovery Occasion fill-ins Assortment, Spacing & Fulfillment Promotional Item Focused Trade Strategy Basket Building Incentivize Trial Strategy 10 Source: Kantar, retailer website
Seek to understand our categories more broadly More opportunity and more competition: If you were a Yogurt shopper online, this is what you might see 11 Source: Kantar, retailer websites
…including their functional roles 12
Evaluate the impact of disruptive trends & consider how to incorporate into our brands and categories 13
How do we do this? Retailers are increasingly demanding data to inform their decisions as consumption trends change and new innovations become available Creative thinking driven Fast feedback to make Ability to build by both category real-time, data-driven compelling narratives knowledge and data optimizations that show the full story 14
Data and technology can help us achieve this and drive results Test assumptions using data Use virtual reality to get quick Build storyboards in virtual reality and predictive analytics results & real-time feedback to present a compelling narrative 15
Run ‘educated gut checks’ that leverage data & analytics Test assumptions using data Use virtual reality to get quick Build storyboards in virtual reality and predictive analytics results & real-time feedback to present a compelling narrative 16
Make optimizations in real time to make quick pivots Test assumptions using data Use virtual reality to get quick Build storyboards in virtual reality and predictive analytics results & real-time feedback to present a compelling narrative 17
Tell the category story in a visual (but data-driven) way Test assumptions using data Use virtual reality to get quick Build storyboards in virtual reality and predictive analytics results & real-time feedback to present a compelling narrative 18
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Implications Understand your shoppers more deeply • How have their trip-types changes? • What role does your category serve in their lives? Consider your categories more broadly • How have your category lines blurred? • What disruptive trends will change the dynamics of your category? Leverage data and technology to develop and test assumptions, and build a compelling narrative 20
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