Cours N5 Flashcards
Define the category what does it mean ?
A category is a group of distinct products, services consumers consider as complementary or substituable to satisfy their needs
—> subjective
Category set represented as
A category tree
Tools to define them
- qualitative researches : to understand the shopping motivations —> goal based categories
- standard trees (ex: ECR, ACNielsen)
- quantitative researches on consumers panels
2 ways to define the categories
Product based
Customer based
3 types of roles
- strategic
- economic
- consumer
Strategic role : ECR
Destination
Routine
Seasonal
Convenience
Destination
- used to build image of qualitative differentiation compared to competition
- strong playful émotive impact on the consumer
—> investments in assortment, space and merchandising
Routine
- used to build image of good value for money
- have been put through a process of trivialization so saving is a critical element of choice
—> investments in term of price, promotion and lowest price references
Retail mix for destination
Range :
Full range / largest choice
Price :
Coverage of all the price tiers
Shelf space : over exposed
Promotion: high level of activity / strong adaptation to the store
Retail mix routine
Range :
Focus on the essentials in terms of brands and SKU’s
Price :
Competitive alignement
Shelf space :
Front line with good traffic
Optimisation of shelf space
Promotion:
Average level of activity
Assigning a role to the category
Economic role : Profit niches Stars Problematic Trafic builders
Axes economic roles
Abscisse : rotations
Ordonnées : margin
Consumer roles axes
Abscisses : pénétration
Ordonnées : frequency of buying
Consumer roles categories
Niches
Primary
Marginal
Necessary or Edonic
Analytic moment : assessment
- internal performance
- external performance
What to analyze
- assortment : number and type of SKU
- price : price tiers
- promotion : promo intensity and type of promo
- space : quantity of space for segments and items
Operative moments
Objectives
Strategies
Tactics
Objectives can be
- trafic = greater penetration
- enthusiasms : increase the shoppers involvement
- transaction : increase the average purchase
- cash flow : increase volumes or the sales of higher priced items
- margin
Challenge of implementation
Internal
External
Internal
Different store formats
Convince the store mana / entrepreneurs
Adaption to localism
Reward systems
External
Contract re-négociation
Logistics
