Retailer’s and their perceptions

• BB
• Reliance Retail
• Spencer
• Easy Day
• V-Mart
• D Mart
• Flipkart
• Amazon
 Category roles
• Destination: To be the primary category
provider and help define the retailer as the
store of choice by delivering consistent,
superior target consumer value
• Routine: To be one of the preferred category
providers and help develop the retailer as the
store of choice by delivering consistent,
competitive target consumer value.
 Category roles….. Contd.
• Occasional/ seasonal: To be a major category
provider and help develop the retailer as the
store of choice by delivering consistent,
competitive target consumer value.

• Convenience: To be the category provider and

help reinforce the retailer as the full-service
store of choice by delivering good target
consumer value
Objective: Assign category
role(purpose) based on cross-category
quantitative analysis that considers the
consumer, distributor(retailer), supplier
and mkt. place
 Analytical tools used
• Basket analysis: Market basket analysis is one of the key techniques
used by large retailers to uncover associations between items. It
works by looking for combinations of items that occur together
frequently in transactions. To put it another way, it allows retailers
to identify relationships between the items that people buy
• Frequent shopper data
• Household panel data
• POS data
• Occasion analysis
• Fair share and demand gapping(the difference between what sells
and what should sell)
• Financial analysis(sales turns, gross profits, customer conversion,
activity based costing
• PA-A8MFFCHNCL(material style code): Park
Avenue brand of autumn 0’08 men’s full
formal shirt with check design and normal
collar of L(large) size
• ZO-S8MHCPLBDM: Zodiac brand of summer
’08 men’s half sleeve casual shirt with plain
colour button down collar in M(medium) size
Assigning roles delivers two primary benefits:

• Great consumer value by managing categories

according to their importance to consumers
• Maximal return on invested resources by
retailers and suppliers through efficient,
intentional allocation of shelf space, marketing
dollars and manager time
4 key Q’s to be asked for assigning roles and
managing categories
• How important is the category to the
consumer?
• How important is the category to the retailer?
• How important is the category to the retailer’s
competitors?
• What is the category’s outlook in the market
place?
 Cross category comparison(Source: AC
Nielson home scan consumer facts)
Item trips per item Item $ per item
buyer buyer
Retailer A
Carbonated 11.2 60.15
beverages
Bottled water 4.8 14.63
 Buyer conversion comparison(Source:
AC Nielsen Homescan account shopper
profiler)
Carbonat Cola Cola diet Lemon/lime Lemon/ All rem. All rem.
ed regular regular lime Carb. Carb.
beverage diet Beverages beverages
s regular
Retailer A 83 68 61 54 56 64 60

Retailer B 88 71 66 60 57 70 66

Retailer C 85 70 64 58 58 72 64
Demographic comparison between retailer shoppers
and category buyers(Source AC Nielson Homescan
Account Shopper Profiler and Consumer Facts

Demographic segment Retailer A Carbonated

beverages
Household size- 1 member 53 70
Household size- 2 members 110 105
Household size-5+member 104 124
Age/presence of kids- any kids under 6 119 92
Age/presence of kids- any kids under 6-12 133 125

Household income <$ 20,000 52 93

Household income -$ 20,000-29,000 63 92

 Alternate category role matrix
Goal Option 1: Increase sales/maintain Option2: Maintain
margin sales/increase profit

Pricing
Promotions
Assortment
Planogram
Feature
ads.
Display
Positioning