Applying CatMan 2.0 to Target ConfectioneryApplying CatMan 2.0 to Target ConfectioneryApplying CatMan 2.0 to Target ConfectioneryApplying CatMan 2.0 to Target Confectionery
May 15, 2017May 15, 2017May 15, 2017May 15, 2017
CatMan 2.0 FrameworkCategory Assessment: Who buys the category and why? How is the category performing?
We research along the entire path to purchase
Total Confection
Demand
Purchase
Need/Trip
Retailer/Outlet
Selection
Store Shopping/
Navigation
Item/Quantity
Selection
Retailer Selection Drivers
Purchase Quantity Drivers
Confection Missions Purchase Location Insights
Demand Segments
Hershey’s approach is to be an indispensable consultative partner to our retail customers
Tactical Excellence
P&L
Mindset
Insight
Driven
Performance
Effectively employ analytical tools to
drive superior tactical solutions
Understand customer financial objectives
and value creation levers
Understand shopper behavior drivers
Develop compelling strategies to
achieve customer financial objectives
Definition
Shopper
Mindset
Target Confectionery Background
• Confectionery has historically performed very well
at Target, especially seasonal candy
• Target’s share of candy sales across xAOC has
consistently grown, driven in part by exclusive items
• Target has identified candy as a Signature Category
oBe famous with Guests
oDrive sales
oBe a clear market leader
• Signature categories are expected to drive
improved Guest experience, traffic, and loyalty
Target Confectionery Background
• In 2016 there were several key personnel changes
on category desks
• In addition, Target’s SVP for Grocery departed
• In 2016 category performance lagged vs. total store,
and lagged vs. competitive set
• Causal Factors
oTraffic
oConversion
oLess Promotions/Displays
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
Target Confectionery Background
• Hershey’s Category Advisor Team and the Target
Candy Buying Team agreed on need to elevate
discussion around improving category performance
• In late 2016 we aligned on an initiative to restart
growth and build a long-term strategy for success
oEducate internal Target KDMs on the role and
importance of the category
oLeverage insights at a higher rate
o Implement Best Demonstrated Practices with regard to
planogram creation, adjacencies, merchandising, etc.
oProvide a scorecard to assist internal decision-making in
awarding promotional and ad space
oBring joy back to the candy shopping experience
Assessment What & Why –CatMan 2.0 FrameworkCategory Assessment: Who buys the category and why? How is the category performing?
CatMan 2.0 and Target Confectionary Action Plan
1) Guest Research
◦ Path to Purchase
◦ Consumer Decision Tree
◦ When the product sought is not available, shoppers will:
Step 1: Navigating the Aisle
Improving Noticeability and Engagement
tactics will drive shoppers into aisle
Step 2:
Finding the right Items
Step 3:
Choosing the Items
USAGE OCCASION (by Segment)
PACKTYPECHOCOLATE OR
SWEET? (Flavor)BRAND
KEEP FLAVOR, SWITCH BRANDKEEP FLAVOR, SWITCH BRAND
KEEP BRAND, SWITCH FLAVORKEEP BRAND, SWITCH FLAVOR
BUY NOTHINGBUY NOTHING
LOOK IN ANOTHER AREA OF STORELOOK IN ANOTHER AREA OF STORE
WAIT UNTIL NEXT VISITWAIT UNTIL NEXT VISIT
SWITCH PACK SIZESWITCH PACK SIZE
GO TO ANOTHER STOREGO TO ANOTHER STORE
Almost half of shoppers
WILL WALK AWAY WILL WALK AWAY WILL WALK AWAY WILL WALK AWAY from the
aisle if desired candy is not
available
CatMan 2.0 and Target Confectionary Action Plan
2) Playbook – Compiled insights and category data in support of:◦ Gaining Target leadership support
◦ Communicating role and importance of category
◦ Winning more promotions/displays
◦ Training new team members
3) Accelerating Candy Growth Initiative◦ Opportunity Framework and Pillars
◦ Aligned on Problem Statement and Opportunity Statement
◦ Project management to deliver on each pillar of growth
PILLAR 1 PILLAR 2 PILLAR 3 PILLAR 4
IMPROVE COLLABORATION
and
INFLUENCE DECISIONS
ALIGN PHYSICAL/DIGITAL MAXIMIZE ASSETSIMPROVE GUEST
EXPERIENCE
CatMan 2.0 and Target Confectionary Action Plan
4) Category Metrics and Scorecard
◦ All major performance metrics included; adding internal metrics for all KDM
Priority Success Metrics 2017 2018 2019
1 Sales $ TBD TBD TBD
2 Market share TBD TBD TBD
3 Profit TBD TBD TBD
4 Rate TBD TBD TBD
CatMan 2.0 Next Steps1H 2017
◦ Buying Team and Advisor Team are aligned on role of the category for shoppers
◦ Working to educate all KDMs on role of category and its importance to sales, margin, and loyalty
◦ CatMan 2.0 process included leveraging Shopper Insights and research to insure we have up-to-date Guest data, including demographics, CDT, and store clusters
Ongoing◦ Aligning support model to new organizational structure
◦ Continuing education of leadership
◦ Continue to refine the data set to remain on-point regarding key trends and insights
◦ Leverage all of the above against the online environment to insure a seamless Guest experience as they shop the endless candy aisle