Collaboration, Creativity and Contribution: Observed Characteristics of a Successful Category Management Strategy
By Rose Spicer-Oracle on Nov 04, 2015
Author: Amber Trendell, Director of Retail Marketing, Oracle
The Annual Category Management Conference had a strong underlying thread that weaved all of the sessions together this year and that was the demonstrable upside when retailers and suppliers collaborate. And that collaboration starts with data. Lots and lots of data. From consumer insights to store transactions, category managers have one thing in abundance and that is information. On the flip side, category managers on both sides of the fence are stretched super thin as they attempt to create compelling, localized assortments that are varied enough to make consumers feel they have the best selection and targeted enough to maximize space and revenue.
So how are category managers successfully transitioning from tactical to strategic and delivering wins for their business? I heard three primary messages at the event this fall: Collaboration is key, Creativity is not a luxury but a necessity, and with the right strategy and tools you can clearly demonstrate Contribution to the business. Here's some additional detail:
• Collaboration: when retailers and suppliers work together to identify upside and define a collaborative strategy the results can be phenomenal. Take the case study presented by Wawa and Redbull. Redbull knew empirically that Wawa lagged behind its competitors in the energy drink category and based on their projections demand for the product is on a steady climb well into the future. By working together to define a strategic goal of making Wawa the destination for energy drinks the C-store not only took the leadership role in the category but enjoyed double-digit organic growth. If we extend this concept of collaboration further to include technology and data science-as-a-service there is far more upside to be captured. Learn more about leveraging Science to Drive Profit and Differentiation in Grocery Retail here.
• Creativity: it's likely safe to say that virtually everyone in retail knows that the impact of eCommerce on stores is really only in its infancy. If stores become an experience destination and media becomes the new eCommerce vehicle as predicted by Doug Stephens in his keynote session, how will category managers for products that may not translate as exciting or engaging ride the wave of store as experience destination? The answer is creativity and that is not something you can aggregate, pivot and deliver a report on. You need time to think and interact and actually go out into the field and experience your stores. So where is the time going to come from? By transitioning space optimization, consumer decision trees and demand transference analysis to a partner like Oracle you can effectively get out of the business of data crunching and into the business of experience orchestration.
• Contribution: understanding the future of retail and how to capitalize (or just stay relevant) is important but where the rubber meets the road is in your ability to demonstrate lift and value to the business today. Oracle Retail has thoughtfully designed its planning and optimization solutions to align with varying degrees of business maturity particularly in respect to retail science and cloud applications. Whether you're just getting started or are ready to apply advanced retail science to your data, we have options.
Download the recent Oracle OpenWorld presentation on our planning solutions from retail expert Marc Koehler: Planning: Consumer Inspired Assortments