Category Management

Success Factors

Below you will find key Category Management questions you should ask yourself if you are a supplier of FMCG goods to retailers or wholesalers and wish to have a killer planogram proposition.

Do you give advice to your retail customers on recommended planogram 's?


This may sound easy. But do you?

Do you know when they review their range in your category? Do you have planogram review dates for every retailer you supply written down in a central place? If not - do it. You can then guage the ideal time to present Planogram guideiines.

Do you only advise them on planogram 's only when they ask?

If that's the case how do you know that they are not working closely with you competitor instead of you.

Does your Sales Force have knowledge of planogram concepts?

The FMCG salesman may think he does, but if he puts over the message, "Please put my product on the most visible shelf", the retailer will not listen unless it is backed up by facts and a planogram showing that the retailer will benefit. Basically, he will waste the retailers time.

Many FMCG suppliers think category management concepts are easy and don't see them as being fundamental and therefore trivialise it. A large FMCG retailer for China said to me. "Its not rocket science" and then went on to explain that I couldn't help to stack retailers shelves. He just didn't realise there is a far more strategic level.

Concentrate on helping the retailer achieve more sales of the whole range.

Don't go to the retailer saying that you have the number one product and it should have the number one space. You will either be asked to pay a big amount of cash, or he won't listen to you again when you want to present comprehensive category management advice.

Try to be independent. Look at the whole category. Present on that. Having close trusted contact with the buyer is worth it.

What you should achieve is fair representation for your product range. This might sound bad, but hey, do you have that? If you think you do without some structured research, you probably don't, or you are paying a big amount of cash for the privilege. However, you may be lucky. Lucky in one, probably unlucky in two others.

Is your Stock actually on the planogram, but not present?

Sometimes a retailer thinks your product is not performing, but perhaps its not in every store or their largest turnover store. The retailer may discontinue the product and you have lost even although your product was sound. That could be prevented.

Perhaps the product wasn't given enough shelf space on the planogram and constantly ran out of stock, therefore reducing sales. You must know this to defend you position.

Is your stock visible - do you know the %ages?

Do you know the percentage benefits of getting your product at the optimal shelf height. Do you know extra percentage sales you get for extra facings of your product? Can you credibly present to the retailer why your product should be in the prime or a better space?

Do you provide planogram 's?

Can you supply planograms. This is a basic. If you don't then start. A picture tells a thousand words.

You don't necessarily need a space management software program like Intercept from Intactix. But you may if you have a larger product range. You can start with a spreadsheet if needs be.

Do you know the profits your products generate for your customer in relation to others?

Perhaps the retailer puts high profit margin items in the best locations. Can you actually show him that he's losing money? i.e. quantity * margin = profit!

Finally!

Do you have a category management strategy. If not form one. If you do not have the necessary experience, get somebody in who knows about it to help form your plan of action.