Category Management

CSD – MT
Category Management

“ A Supplier - Retailer Process of

Category
Managing Management
Categories as Strategic
is all about
Business growing
Units, Producing Enhanced
Business
TOTAL Results by Focusing
category value.on
Delivering Consumer Value “

SUPERMART
Our Endeavour

WIN WIN WIN

HUL CSD’s URC SHOPPER

Category growth Category growth Higher standards of service

Trade relations Full profit realisation More convenient shopping
Credibility Customer loyalty Targeted individual needs
Increase category share Reduced out of stocks

CATEGORY MANAGEMENT
 CATMAN PROCESS
Select Reputable Supplier to entrust & coordinate the
SELECT
SELECT CATEGORY
CATEGORY whole Catman process
CHAMPION
CHAMPION

Determine products that make up the category and

CATEGORY
CATEGORY DEFINITION
DEFINITION its segmentation from the consumer’s perspective
Assign role based on cross-category analysis and
CATEGORY
CATEGORY ROLE
ROLE comparison considering consumer, retailer, and market
information

Conduct analysis on subcategories, segments,

CATEGORY
CATEGORY CATEGORY
CATEGORY ASSESSMENT
ASSESSMENT brands, skus based on consumer, retailer, supplier
REVIEW
REVIEW and market information

CATEGORY
CATEGORY SCORECARD
SCORECARD Establish the category’s performance measures and
their targets

Develop marketing, product supply and, if necessary,

CATEGORY
CATEGORY STRATEGY
STRATEGY in-store strategies for the category to deliver category
role and performance targets
Determine optimal category assortment, product supply,
pricing, shelf presentation, promotion and introduction
CATEGORY
CATEGORY TACTICS
TACTICS tactics that ensure the category strategies are
implemented

Develop and implement the category business plan

PLAN
PLAN IMPLEMENTATION
IMPLEMENTATION through specific schedule and list of responsibilities
Assortment &
Planograms in Category
Management

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Category Assortment

• Determining the most optimum sku mix of a category

• How much should be cut?
– This is based on the agreed category role (Destination, Preferred,
Convenience, Seasonal Destination, and Seasonal Convenience)
– Destination Category should have the widest and deepest assortment
(efficiency is not a concern); the rest of the roles dictate that the
assortment “meets the needs/limitations (space)” i.e. efficiency is the
name of the game
• Commonly used KPI’s in determining the optimum assortment
– Sales Value, Sales Volume, and GMROII
 Category Shelf Planogram

• A planogram is a visual diagram which shows how the

category should be displayed on shelf
– Based on how the consumer/shopper “sees” and/or “buys” the category i.e.
based on the category construct or purchase decision tree
• Basis for space allocation
– Generic Planogram -> AC Nielsen Retail Audit Data
– Customer Specific Planogram - > Customer POS Data, Performance Index agreed
jointly with the retailer (value share, volume share, GMROII, etc)
• Basis for brand location on shelf is the general
planogram guideline
Principles in Allocating Space…

• Highest contributing sub-category, segment, sub-

segment, benefit platform, or brand is given priority
in allocating space in the primary shelf fixture
• Based on Traffic Flow
• Vertical display orientation for sub-category,
segment, sub-segment, and benefit platform is
recommended; only at brand level is a horizontal
display orientation allowed
Basic Shelf Planogram Principles

• Price Point Discount -> Popular -> Premium from left to right
• Pack Size Placement
» Small to Big pack sizes from top to bottom (safety issue)
» Small to Big pack sizes from left to right (90% of shoppers
are right handed; they get a product off the shelf with their
right hand)
 Basic Shelf Planogram Principles

• Sub-Category, Segment, Level, and Brand Placement

– The highest contributing sub-category, segment, level, and brand is
placed “first in traffic”
– Middle aisle preferred is the category shelf aisle is less than 15 ft

POWDER BAR LIQUID

Henko / Ariel / Surf Excel Matic Surf Excel QW 3 Shelf Tide 3 Shelf Rin Surf Excel 3 Shelf Surf Excel / Godrej / Ezze
Vanish 2 Shelf
Surf excel Matic 4 Shelf Surf Excel Blue 3 Shelf Rin 2 Shelf Henko / Tide
Robin / Ujala
Ariel 2 Shelf Henko Mr White / Wheel
Henko Rin Advance / Wheel 2 Shelf Robin / Comfort
Robin / Ala
Revive/ Bambi / Easy On
Basic Shelf Planogram Principles
• Shelf Layer priority
• 7 ft Shelf -> 3rd and 4th shelf layer
• 6 ft Shelf -> 2nd and 3rd shelf layer
• 5 ft shelf -> 1st and 2nd shelf layer
Its not About getting the top Shelf visibility in all the Bays across
6 bays, Instead get the right visibility in the first 4 Bays only
Benefits of “Planograming”

• Minimizes out of stock and overstocked skus due to correct

space allocation
• Provides “ease of shopping” for the consumer/shopper since
the category is displayed based on how she “see’s”/”buys” the
category
• Used by retailers in “highlighting” certain sku’s/products i.e
high GMROII sku’s, NPI’s, etc
• Ensures consistent look of the category across geographies
and store formats
 Frame Work Category:_____________________
Category Definition . . .
Category Construct . . .

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Category Definition . . . Skin Cleansing
All skin cleansing products, foaming or otherwise, which are used to provide skin
cleansing - with or without water - for body, hand and face - including bars, liquids
(shower and hand (in an out of home), gels, applicators, face washes, bath additives,
wipes, sanitizers and soap strips and excluding face mask, specialist face cleansers
(make up removers) and traditional home remedies, toners and astringents
Category Construct . . .

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Personal Wash Planogram - Mumbai
Dove
Lux
Pears Lux
Lifebuoy & Liril Hamam & Breeze
Lifebuoy Lifebuoy & Lux Rexona
Depth = 36cm (Max)
18cm (Min)

The Brands Block on Dove, No of Shelves Allocated

Pears, Lux, Rexona, Hamam, for HUL Brands in the
Lifebuoy & the complete HUL total Category.
Block.
Personal Wash Planogram - Mumbai

Dove
Lux Lux
Pears Rexona Lifebuoy
Liril Lux & Breeze Hamam

The Brands Block on Dove, No of Shelves Allocated

Pears, Lux, Rexona, Hamam, for HUL Brands in the
Lifebuoy & the complete HUL total Category.
Block.
Personal Wash Planogram - Chennai
Dove Rexona
Pears
Liril and Lifebuoy
Lux PERSONAL WASH 64%
Hamam
Lifebuoy

The Brands Block on Dove, No of Shelves Allocated

Pears, Lux, Rexona, Hamam, for HUL Brands in the
Lifebouy & the complete HUL total Category.
Block.
Personal Wash Planogram - Chennai

Dove Hamam Lifebuoy

Pears Amber Lux Rexona
Pears Amber and Oil Control Liril and Hamam Lifebuoy

The Brands Block on Dove, No of Shelves Allocated

Pears, Lux, Rexona, Hamam, for HUL Brands in the
Lifebuoy & the complete HUL total Category.
Block.
Personal Wash Planogram Delhi

Dove
Lux
Pears
Lux
Pears & Liril Hamam
Lifebuoy Rexona
Depth = 36cm (Max)
18cm (Min)

The Brands Block on Dove, No of Shelves Allocated

Pears, Lux, Rexona, Hamam, for HUL Brands in the
Lifebouy & the complete HUL total Category.
Block.
Personal Wash Planogram Delhi

Dove
Lux
Pears Lux Rexona Lifebuoy
Pears & Liril Hamam

The Brands Block on Dove, No of Shelves Allocated

Pears, Lux, Rexona, Hamam, for HUL Brands in the
Lifebuoy & the complete HUL total Category.
Block.
Personal Wash Planogram - Calcutta

Dove Lux
Lux
Pears Hamam
Liril Lux & Breeze Rexona
Lifebuoy & Rexona

Depth = 36cm (Max)

18cm (Min)

The Brands Block on Dove, No of Shelves Allocated

Pears, Lux, Rexona, Hamam, for HUL Brands in the
Lifebouy & the complete HUL total Category.
Block.
Personal Wash Planogram - Calcutta
Dove Lux Lux Hamam
Lifebuoy
Pears Lux & Breeze Liril Rexona

Depth = 36cm (Max)

18cm (Min)

The Brands Block on Dove, No of Shelves Allocated

Pears, Lux, Rexona, Hamam, for HUL Brands in the
Lifebuoy & the complete HUL total Category.
Block.
Category Definition . . . Fabric Care
The Indian Laundry category consists of all products that clean and care for clothes.
It includes all products that are used before wash, during wash and after wash
Excludes – all out of home laundry services – dry cleaning, ironing, dhobi services,
launderettes.
Category Construct . . .

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Fabric Wash Planogram
Surf Excel Matic Surf Excel Blue
Surf Excel Quick Wash Rin Advance
Wheel Gold

Surf Excel
Bars

No of Shelves Allocated
for HUL Brands in the
total Category. Rin
Advance
Bars

Wheel &
501 Bars

The Brands Block on Surf XL Auto, Surf QW, Surf

XL Blue, Rin, Wheel & the complete HUL Block. –
Separate for Powders & Bars
Fabric Wash Planogram

Machine Wash Concentrate Colour control Whiteness & Mass Usage

Surf Excel Matic Surf Excel Quick Wash Surf Excel Blue Rin and Wheel Gold FABRIC WASH 61%

Surf Excel
Bars

Rin
Advance
Bars

Wheel &
501 Bars

No of Shelves Allocated
The Brands Blockfor
onHUL
Surf Brands
XL Auto,
inSurf
the QW, Surf
XL Blue, Rin, Wheel &total
the Category.
complete HUL Block. –
Separate for Powders & Bars
Category Definition . . .
The hair care Category consists of all types of hair products sold to
consumer in mass retail and salons including daily hair care, oils,
colorants & therapeutic hair applications.
Hair Care Planogram
Hair Care Planogram
Store Layout

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Store Realities

• Store Space is an asset.

• Store space is limited.

• Challenge:
– “How can we best use store space to maximize
business potential?”
Objectives of Practical Store Layout
Frequency Of Driving Traffic
visit (Penetration)
(Purchase)

Drive
DriveSales
Sales
&&Value
Value

Increase Basket
Spend
(Transaction Size)

An operation management tool which aims to

maximize profit per square measurement via
efficient lay-outing and allocation of store space
Practical Store Layout Process

CIRCULATION PATH
1

EFFECTIVE
2 ADJACENCIES
SPACE
3 ALLOCATION
Practical store lay-out process
CIRCULATION PATH
1

What is it all about?

> Proper placement of high traffic categories to the entire store
How can it benefit our business?
Increase Purchase Potential
> Encourages shoppers to visit the whole of the store by guiding them
with the placement of key categories
> Increased shopper exposure for low traffic categories when
partnered with high traffic categories
Greater shopping convenience
> Prevents lane clogging by distributing key categories around the
store
Practical store lay-out process

EFFECTIVE
2 ADJACENCIES

What is it all about?

> Grouping related categories together based on using different
analysis tools.
How can it benefit our business?
Increase Purchase Potential
> Influence complementary category purchases
Greater shopping convenience
> Makes it easier for shoppers to buy what they need since related
categories are grouped together
Practical store lay-out process

SPACE ALLOCATION
3

What is it all about?

> assign proper space to categories based on their store performance and
contribution
How can it benefit our business?
Greater efficiency
> Ensures enough stocking for high demand categories to help us avoid
out-of
stocks during peak hours
Greater shopping convenience
> Increases category visibility to make it easier for shoppers to find what
they
want
> Increases shopping space for the category to avoid overcrowding in the
area
 Full Store Layout - Macro view
Fresh Section
CIRCULATION C
1 Cooking Essentials & Party
PATH h
Preparation
e
B c
EFFECTIVE e
2 ADJACENCIES Snacks k
v -
e Quick Meals
r
o
SPACE u
3 ALLOCATION
a
g Healthy Selection /
t
e Beverages -
C
Breakfast o
u
Baby Care n
t
Personal Care
e
r
s
Home Care
Full Store Layout - Macro view
Fresh Section CIRCULATION
C 1 PATH
Cooking Essentials & Party
h
Preparation
e Legend :
B c
e
High Traffic
Snacks k
v -
e Quick Meals Low Traffic
r
o
a u
g Healthy Selection /
t
e Beverages -
C
Breakfast o
u
Baby Care n
t
Personal Care
e
r
s
Home Care
 Full Store Layout - Macro view
EFFECTIVE
2 ADJACENCIES

• Principle
- arranging the products based on shopper decision flow will also make it
more convenient for shoppers to shop in-store

Home Detergents Confectionery

Beverages, Snack
Care House Ware Snacks
& Sweets
Housekeeping Beverages
Paper Category Dressings & Spreads
Personal Breakfast
Care
Feminine Adjacencies Breads
Health & Beauty or Clusters Pasta & Noodles
Baby Diapers Canned Fruits
Quick
Care Infant Milk Canned Meat
Meals
Regular Milk Canned Veggies
Breakfast Dairy Soups
Cooking Essentials
Cooking
Essentials
Full Store Layout - Macro view
Fresh Section SPACE
3 ALLOCATION
C
Cooking Essentials & Party
h Division % Value
Preparation
e
B Food 71%
c
e Snacks k Non-Food 29%
71% v - Total 100%
FOOD e Quick Meals
r
o Source: Nielsen Retail Audit

a u
g Healthy Selection /
t
e Beverages -
C
Breakfast o
u
Baby Care n
t
29% Personal Care
e
NON-FOOD r
s
Home Care
 Thank You
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