Collaborative Category Management ALA Commissary Roundtable

1. Collaborative Category ManagementALA Commissary Roundtable May 1, 2014 Blaine Ross – EVP Global Sales & Marketing CMA Adjunct Professor – DePaul University s

2. Blaine T. Ross • Currently Executive Vice President Global Sales & Marketing Category Management Association www.cpgcatnet.org • Adjunct Professor - DePaul University • 25 years experience in Sales, Marketing and Category Management consulting working with leading retail and manufacture organizations

3. Agenda • Category Management Association Overview • Collaboration Partnership CMA / ALA / DeCA / Suppliers • What does DeCA expect from suppliers? • Best Practices and how to use customer insights • Global Certification Initiative • Talent Acquisition / College Recruiting • Future of effective Category Management 2.0

4. CMA Overview • The CMA is a global community of professionals • Our purpose is to deliver a compelling ROI on Cat Man by improving the overall shopper experience to include: • Sharing Industry Best Practices • Encouraging Member Interaction • Providing Thought Leadership • www.cpgcatnet.org

5. What is the Category Management Association? Category Management Shopper Insights & Shopper Marketing Planogram & Space Management In-Store Execution & Merchandising The only organization that: • Certifies CatMan professionals through industry-wide standards • Serves as an unbiased central resource for industry information and best practices The CMA is an association for companies who want to improve the capabilities of their professionals in:


6. Sample Companies working with CMA

7. Retailers Care about Category Management Source: Progressive Grocer Market Research 2012

8. CMA Membership benefits include… • Share Groups • Certification • Best Practice Coaching • White Paper Availability • Private networking • Membership rate for events • Access to CMA’s e-Newsletter

9. Weekly newsletter • Delivered Wednesday afternoons • Upcoming industry events and Web seminars • Global focus • Tips from solution partners • Share Group meeting agendas

10. Monthly Share Groups Insights & Analytics IP Sessions Military Space Mgmt. Shopper Marketing Solutions Demos

11. Global Industry Events • CMA Annual Conference Sept. 30 – Oct. 2, 2014 - Orlando, FL • LatAm Conference • May 21 – 22, 2014 – Monterrey, MX

12. Definition of Category Management? Consumer Manufacturer Retailer CATEGORY MANAGEMENT Is: “A Retailer or Distributor/Supplier Process Of Managing Categories As Strategic Business Units, Producing Enhanced Business Results By Focusing On Delivering Consumer Value”

13. Category Management is … • A business planning process • Consists of key elements • Manage the category with a consumer focus • Manage the category as strategic business unit • Develop strategic category plans based on mutual category goals and consumer behavior • Collaborate between retailers and manufacturers to achieve desired profit objectives • Increased focus on Consumer….

14. What products are included? What are the sub-categories? How important is the category to the consumers? To the retailer? Who buys the category? How is the Category doing? What are the goals and objectives? How shall we measure success? How will we achieve our goals? What are the elements of the plan for each sub-category or segment? Who does what and when? Category Review Category Plan Basics CMA / DeCA Working on Structure & Process Best Practice Category Management Business Process- Most Retailers Using A Process – Less important the number of steps all now with a focus on the consumer CategoryDefinition CategoryRole CategoryAssessment CategoryScorecard CategoryStrategy CategoryTactics PlanImplementation Examine the Scorecard

15. Voice of Shopper

16. CMA / DeCA Collaboration Determine how vendors can best help DeCA? Assortment? Consumer Decision Tree Clustering? Shopper and need state marketing? Category Management planning? What Systems and Technologies are needed? Category Tactics

17. How Will CatMan Excellence Help DeCA? DeCA will strengthen its position as retailer of choice for your target consumers. DeCA will become more competitive versus major conventional retailers Performance against major scorecard goals will improve Shopper satisfaction measures will improve GMROI will improve Transaction size will increase Margins will increase Shelf sets will become easier to shop CMA will help DeCA Be Your Customer’s” First Choice”

18. What Does DeCA Expect from Suppliers? A knowledgeable Account Team or Rep Organization Commitment from Suppliers Armed with relevant data and research Providing Key Facts and Shopper Insights Offering “ Success Models” Persuasive justification for new items

19. DeCA first questions to Sales & CATMAN Teams Please tell me the five most important facts or insights that I should know to plan our business together? Please tell me the most important changes that have occurred in your category since we last talked?

20. Retailers Focus on Answers to theReally Big Questions:

21. Report Executive Briefing • Category Management Industry Survey conducted by The Partnering Group (TPG) in conjunction) CMA • Research Objectives & Methodology • Review of the Key Findings • What Leading Companies are Doing

22. Skills & Competencies Perspective These differences may account for some of the disconnects in the supplier-retailer relationships

23. CMA working with DeCa Leadership Team on Category Management Structure & Process Providing Key Metrics for Success

24. Competency defines the characteristics (knowledge, skills, abilities) required to enable success in performing a specific area of work

25. Thought LeadershipCategory Mastery 3 Trends Affecting Cat Man • The growing power of the retailer • The (digital) empowerment of the shopper • The impact of big data

26. CatMan Maturity Curve Data Analytics & Software Org. Skills Process & Culture

27. Maturity Curve Components

28. CollaborationE www.youtube.com/watch?v=7JQ0vgnzvpM

29. How do you refer to category management in your company? Multiple Forms

30. Category management is … “a platform” Supports all participants – a site for communication and the integration of information and divergent perspectives • Knowledge platform • Relationship platform • Process platform • Communication platform

31. Category management is … “a funnel” • Category management synthesizes information and knowledge within, and across organizations • Information from data, • Insights from information • Direction from insights

32. Category management is … “a wheel hub” Enables business performance of each partner and facilitates interaction among partners - and particularly amongst functions within a single organization.

33. Collaboration has two meanings relating to category management Shared View Collaboration Harmonization Shopper Focus Integration of Knowledge Trust Barometer Multifaceted Leadership Pre-planning Multifunctional/ Multilevel

34. Collaboration Research Harminization Meaning… • The ability for manufacturers and retailers identifying common value or return to working effectively as a team toward a common goal • The prerequisites for team success are: • Respect • The willingness to share information • Strong analytical skills • The ability to create insight • The capability to direct and take decisive action

35. A “barometer“ of success… • Great teamwork indicates confidence in partners and when found always relates to relationship quality • Consider that partner reliance is almost always tied to planning and execution success • Good relationships are easily understood

36. The Category Management Association Certification Program For DeCA

37. What is certification? www.cpgcatnet.org Category Management Association • Certification can be attributed to people and training • Certification of individuals • Is an objective, third-party designation of professional standing • Is competency based and based on an individual’s experience and training minimum • Certification of a company’s training program means that the program imparts the necessary competencies to perform category management at designated industry professional standards

38. Some of The Organizations Involved In The Development and Vetting Process

39. Category Management Standards Individual Certification: Quantifies the skill level of individual category management professionals Ensures the standard has been met or exceeded Coursework Certification: Designated course officially fulfills a requirement towards individual professional certification.

40. Certification Scorecard Simplistic approach • 3 levels • required fundamentals • plus recommended skills Adaptable • flexible for companies, big and small • will improve over time

41. Personal Certification Report

42. 3 Certification Levels

43. CMA Online Certification ProcessFor DeCA Associates &Supplier Community

44. Individuals

45. Learning Programs & Essay Questions:

46. “Roadmaps” for unachieved levels: John Doe John Doe John Doe

47. Certified Training ProvidersDeCA – Primary Company Learning Evolution

48. Certification has the following specific benefits: • Industry leadership • Competitive advantage • Sustainability - Employee Value Proposition (EVP): • Clear message to DeCA employees that you are investing in their success • Provides employees with a specific roadmap for professional growth and development • Enhance employee morale, retention via professional development • Talent expansion and preparation • Mutually Beneficial for DeCA and Supplier Community

49. Costs for an Individual’s Certification • Initial costs $895.00 – Note Only $805.50 if CMA Member • Active Status Costs: • Renewal for an individual’s certification after year 1 is $100.00 annually • Includes: • New training programs completed • Maintaining certification records • Updating certification level

50. Six areas of improvement Future of Catman 2.0 Release These need confirmation from the CatMan 2.0 development committee Based on a review of the major changes in the ecosystem and a consensus of practitioners, here are the primary areas of focus to upgrade CatMan 1.0 to CatMan 2.0 • Improving internal preparation • Defining collaborative behaviors • Incorporating new data to generate insights • Defining the assessment pathway and tools • Incorporating social media and shopper marketing • Enhancing execution