Talented Category Management

Talented Category Management

R.V.Balasubramaniam Iyer
India
1

Category Management

Category Management is a process

that involves managing product

categories as business units and

customizing them (on a store by store

basis) to satisfy customer needs.

- Nielsen

- The Partnering Group

rvbalaiyer@gmail.com Talented Category Management - Category Management Conference - Atlanta October 30, 2008

CATEGORY MANAGEMENT
 Retailers and manufacturers have refined the process of Category Management over the years

 Some processes have five steps, some have six. In some, the sequence of the 8 steps have

been rearranged compared to the original

 All of them begin with the traditional eight steps and then develop processes with fewer steps

while keeping to the objectives of the original version

 Reason stated is that the resulting steps are shorter, tighter and easier to absorb and act on

 Today, a whole suite of sophisticated tools and applications are available that category

managers can use and find the process friendly and easy to implement

 The 8 step process has now become less of a standard and more of a starting point

 Keeping all of the above in mind, a acronym has been created which helps us remember the

steps, the right sequence and intended applications of each stage


The CATEGORY Acronym
Based on the 8 step Category Management Model

In order to ensure that the 8 steps of the Category

Model were easy to recall and implement – an

acronym was successfully developed that

aligns each of the 8 steps with the word :

CATEGORY


Based on the 8 step Category Management Model

CONSTITUENT PRODUCTS (Category Definition)

ALIGNMENT WITH RETAILER (Category Role)

TRACK PERFORMANCE TO DATE (Cat Assessment)

EXPECTED TARGETS & OBJECTIVES (Cat Scorecard)

GO-TO-MARKET STRATEGIES (Category Strategies)

OPERATIONAL OPTIMISATION (Category Tactics)

RESPONSIBLE EXECUTION (Category Implementation)

YIELD REVIEW (Category Review)


Common Threads between Category Mat & Talent Tran.
 Space Allocation : Role Description

 Plannogramming : Organogram

 Inventory : Head count

 Assortment : Team

 Price : Cost To Company (CTC)

 Shelf Edge Label : Designation

 Material GRN (Goods Received Note) : On-boarding and Induction

 Visual Merchandise / Display : Grooming and Uniforms

 Revenue / GMROF : Pay-Slips / Productivity / Bottom-line

 Product Promotions : Incentives / Rewards & Recognition

 Product Life Cycle / Road Map : Career Path

 Product Roll Overs : Succession Planning

 Excess Stocks : Bench
 End of Life : Pink Slip


Talent Transformation

The social leadership of talent resources through

corporate & academic partnerships with an aim to

uplift economy and culture through satisfying

customer and individual experiences across all

touch-points.


INDIA


FOR TALENT TRANSFORMATION

It is increasingly obvious for retail operations success

that Talent – sourcing, transformation and retention is

getting to be critical. Since the linkages are so common,

it was decided to retain the acronym :

CATEGORY


CATEGORY – for Talent Transformation

COLLABORATION Mindset

ALIGNED with Company, Values & Colleagues

TRAINING for Role & Beyond

EXECUTION Efficiency

GUEST RELATIONS
OUTSTANDING Experience

RESPONSIBLE Work-Life-Environment Balance

YIELD MATRICES – Comprehension & Empowerment


Reliance Accelerated Collaboration Environment (RACE)

Work is Accelerated by speeding up decision making using a
proven process and methodology, getting months of work done in
two to three days. It is speed and quality at the same time.
RACE helps create effective Solutions by developing plans that
are fully bought into by all the stakeholders and can be immediately
mobilized coming out of an meeting / session.
RACE is not a typical work Environment but is a creative
workspace that is technology enabled knowledge rich, flexible, fun
and can be designed and reconfigured real-time to facilitate the
work and priority.


The C-D-I-T Model

CORPORATE LEADERSHIP

DEPARTMENT / CLUSTER

CONSULTATIVE SALES IN STORE ASSOCIATES

TRANSACTION Back office
DELIVERY / LOGISTICS

INSTALLATION / ResQ
CONSUMER ELECTRONICS

TRAINING / iPromise
DOMESTIC APPLIANCES

IT & PERIPHERALS

TELECOM


COLLABORATION MINDSET
Everybody talks a good game about collaboration, buts its often just big talk
The other thing is that a lot of companies lack the systems to be able to collaborate
And they also lack the culture of collaboration.
- Dale Hagmeyer, Vice President,
Gartner

 The launch of Reliance Retail and the Cap Gemini experience (ASE). The NavCenter /

Innovation Labs – concepts pioneered by Matt Taylor / Langdon Morris

 Touch-points of Consumer Experience at CDIT@RDRL as a collaborative model of RR


The Lijjat Case Study (www.lijjat.com)

 Shri Mahila Griha Udyog Lijjat Papad. India’s popular crispy bread. Consumed roasted or Fried.

 Started with a modest loan of $2. The cooperative now has a annual sale that exceeds $ 1 billion

 Completely run by women members as owners.(Ben). No male members – even on honorary basis

 Kneading – Rolling – QC (consistency & good quality) – Packing – Supply to Distributor.

 Accountants in each branch checks daily accounts. Single price across India.

 Exports exceeding $ 0.25 billion! But no difference in quality of product for India versus Export.

 Profits (and losses) are shared equally among all members irrespective of seniority, age or role

 Overall committee of 21 members oversee the institution overall working No Power Center

 Objective of committee to ensure self-dignity and respect of all members at workplace

 Members from all communities, religion, language and demography..

 DECENTRALISATION works !

 Remuneration to all members is made in form of gold coins – 5 gm and 10 gm gold.


TEAM WORK that was measured & rewarded

The Inter-Bottling
Units Incentive
Program.
The Sales Teams The Trade Partner
Incentive Programs. Incentive Programs.



 NSO Training Model – to build a sense of pride and clarity of role for each associate

 Availability – Integrity - Dependability (AID) model for gaining supervisor confidence

 Transparency of company’s accountability among colleagues – Lijjat case study

 TEAM work that is measured and rewarded – Coca-Cola India


DIGITAL, SERVICE & DELIVER Models


Training Consumers – iPromise


TRAINING for Role and Beyond

 Product, Process, People Skills through NSO / PSO , P1/P2/P3, SUSD, Tech Labs,

DIGITAL, SERVICE, DELIVER models – to serve formats and categories

 The Learning model developed by Creative Channel Services (www.cyberscholar.com)

 Certification models recognized by the Retail Industry : (Apple / Skillsmart/ Purple Passport)

 Life long Learning assistance – The Manipal University Model of RDRL

 Web 2.0 tools for collaborative learning – “Learning-Lounge” of Best Buy


GROOMING & Code of Conduct - SELF


DRESSING UP OUR STORES


EXECUTION EFFICIENCY

 The Operating Model – Plan/Buy/Move/Sell/Support – Efficiency across all elements

 The Product Demo, Test Drive, Seminar and iPromise – by Apple Inc.

 Grooming of Self & Store. Job Aids to support successful performance

 Workplace ethics – Code of Conduct, Netiquettes and Global sensitivities

 Nurturing EQ as Energy / Enthusiasm Quotient


Grahak Devo Bhava


GUEST RELATIONS

 STAR Profiler as benchmark from Singapore Airlines / SQC / Singapore Tourism

 PRIDE : Privacy, Respect, Involvement, Dignity & Empathy from Disney Institute

 Grahak Devo Bhava – the guest relationship model of RR, the postcard

When everyone matters and everyone knows he or she matters, employees are happy to come
to work and they’re eager to give you their energy, creativity and loyalty
- Lee Cockerel


The Economics of Service


Making Buying Technology a simple task


OUTSTANDING EXPERIENCE

 Making Buying a non threatening Experience

 The Price of Premium Service – Coffee Example stated

 Smile + Eye Contact + 3 feet diameter rules observed. Queue Busters.

 Uniforms and Working Environment – to make associates most friendly

 G.E.M.S. – “Go the Extra Mile” concept of Government of Singapore

 Empowered to focus on experience rather than just the processes and systems.

 Happy call by ResQ and lifelong service – 24*7. Story Telling / Customer Endorsements

 Appealing to sight, sound, smell, touch, taste – wherever appropriate


The Akshayapatra Foundation www.akshayapatra.org

 One in three of the world's malnourished children lives in India.

 India has the second largest education system in the world with 108 million children attending primary school

 Akshaya Patra means “inexhaustible container” (Sanskrit) , has its origins in India’s famous epic
Mahabharata

 TAPF Vision reads “No child in India shall be deprived of education because of hunger”

 “Research studies prove that mid-day meals is the most powerful incentive to attract children to schools”

 Was set up in June 2000 in Bangalore, as a charitable Trust to offer nutritious food to deprived children in
government schools to feed 1500 children

 Cost-effective program spends only $0.15 per wholesome meal / per child

 Akshaya Patra is secular and child inclusive and is provided only in Government schools

 Today – TAPF feeds a million children every day, the largest in the world !


 World class facilities and global scale canvas of operations available for all

 The greening of a desert - Jamnagar

 Car pool / Office picnics and off sites / Family celebrations / Chairman’s Diwali bash

 Telecom revolution in India that helped eradicate embarrassment associated with illiteracy

 Organized Retail revolution that promises to minimize hunger and enhance consumption & Infrastructure

 The three wise monkeys are a pictorial maxim. Together they embody the proverbial principle to quot;see no

evil, hear no evil, speak no evilquot;.

 Infosys Foundation that helped create and sustain The Akshayapatra Foundation


YIELD Matrices – Comprehension & Empowerment

 Ability to analyze footfalls and purchase patterns of consumers at store / locations

 Attachment selling as a job-aid for salesman – by DM’s leading to a way of life

 Shrinkage and other yield-reducing elements (EOL) - minimize

 Tracking device at back office for score card – Individuals, Store and National (DSS)

 Regional and Store level consumer training and promotions as CRM

 Competence to read and comprehend revenue ratios such as :

 Yield per sq ft and Yield per person

 Revenue (Average Ticket Value * Footfalls * Conversion Ratio)


CATEGORY – for Talent Transformation
GUEST RELATIONS


YIELD MATRICES – Comprehension & Empowerment


CONCLUSION

 Category management to date across the world has been a function that has its roots in profitable

product management and the functions thereof

 With the growing expectations of the Global Retail Village, it is time to push people management

the respect and position it deserves, as a line function

 Left alone, Category Management can continue its popular path and retain status quo

 But Talent Transformation needs to be integrated for the future of retail and the people who

choose to make a career in this industry

 If we have a unified approach – that marries Category and Talent together at the store level, the

effect we would experience would be outstanding – like a bow tie


The Category Bow-Tie !

CONSTITUENT PRODUCTS (Category Definition)

ALIGNED with Company, Values & Colleagues ALIGNMENT WITH RETAILER (Category Role)

TRACK PERFORMANCE TO DATE (Cat Assessment)
EXPECTED TARGETS & OBJECTIVES (Cat Scorecard)

GUEST RELATIONS
GO-TO-MARKET STRATEGIES (Category Strategies)

OPERATIONAL OPTIMISATION (Category Tactics)

RIGOR OF EXECUTION (Category Implementation)

YIELD MATRICES – Comprehension & Empowerment YIELD REVIEW & M-A-C-D (Category Review)


Talented Category Management

India
35

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Talented Category Management

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