Carrefour and P&G Category Management project -
detergents
G.Beta - Carrefour L.Girlea - P&G
Category Management:
Joint focus of Trade/Industry to meet Consumer needs
Benefits:
For consumer – oriented on his needs, the shopping is easier and more attractive
For trade – develop the business, increase efficiency, build profit, attract new shoppers
For supplier – consumer oriented, customer oriented, builds on our strength
Principles:
Consumer focusedData basedCollaborativeOpenness & trustTotal system approach
Joint project
Why Detergents?
Why P&G?
Why Carrefour?
Detergents category:
Big number of SKUs Limited shelf space Frequent OOS High turnover Traffic builder
P&G:
The biggest supplier in this category Category expertise
Carrefour:
The leader in hyper format Consumer oriented Strategic partnership
Objective:
Reduce out-of-stock in the category Increase turnover for the category Make the shopping decision easier for
Carrefour shoppers
Resources:
Provided by Carrefour: Raw data - Sales and Turnover per item In-store implementation
Provided by P&G: Shopper study/shopper profile Shelf technology/expertise
Steps of the process:
Category definition/analysis:
Detergents:
Structure: auto, handwash, special Assortment classifying Volume/value share vs. market
Category scorecard
Steps of the process:
Category scorecard- example
Sales Margin Share
Detergents
Auto
9 kg
6 kg
Manual
450g
600g
Steps of the process:
Category strategy:
Build traffic – increase the number of purchases
Build transactions –increase the size of the average transaction
Key Measure: Volume share
Steps of the process:
Category tactics:
efficient assortment
Determine the SKUs accounting for 80% of the sales and turnover.
Determine the SKUs that are “unproductive” in terms of both sales and turnover
Steps of the process:
Category tactics:
efficient shelving
According to volume share - determine the right shelf share per category, per size and per SKU
According to shopper decision tree/shopper psychology
Powered by planograms
It really works…!!!It really works…!!!
Category
Streamlined assortment 15% less SKU’s
Out-of-stocks < 7%
Turnover increase 14 %
It really works…!!!It really works…!!!
Continuous process:
efficient pricing
Margin Mix
efficient promotions
Long term joint business plan