PRIMARY SKILLS. Category management Strategy development Shopper behaviour Generating insight Data analysis
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- Alaina Johnston
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2 SUPPORT SKILLS SECONDARY SKILLS PRIMARY SKILLS Category management capabilities We have highlighted fourteen core skills for category management. Tiered into three groups in terms of importance of being an efficient and effective category practitioner Category management respondents who rated their own capability as capable or expert % of respondents Category management Category management Strategy development Shopper behaviour Generating insight Data analysis 32% 31% 63% 46% 37% 40% 30% For all primary skills at least three quarters of individual s consider themselves to be either capable or an expert Three in five people consider themselves experts in interpreting and analysing data, the top skill in terms of expertise Space planning Presentation skills Shopper marketing Promotional planning 28% 41% 10% 17% 35% 54% In the secondary skill areas confidence levels are lower, especially in space planning, shopper marketing and promotional planning The support skills are still important in building capability, however in finance less than half feel Project management 23% 51% capable Finance 4% Account management 15% Negotiation skills 19% Time management 19% 45% 48% 45% 59% Some positive results in capability but how are they benchmarking their capability? Confidence appears higher in the core skills but still need to ensure capabilities in the other areas Expert Capable Source: IGD Individual capability research June 2015
3 Experienced category professionals still have capability needs Category management respondents with over six years experience who rated their capability as expert compared with all category management respondents Skills with GREATEST increase Top 5 Skills with LEAST difference Top 5 Category management Generating insight Data analysis Shopper behaviour Shopper marketing Promotional planning Negotiation skills Time management Presentation skills Account management Gaining experience in category management appears to improve confidence in the primary skills, although in areas of shopper marketing and behaviour individuals who consider themselves experts are in the minority For general skill areas, such as time management, confidence in capability doesn t improve with experience Surprisingly, experienced category professionals are less confident than their less experienced colleagues in promotional planning. Is this indicative of a lack of focus on promotions in category management practice? There are areas of potential capability development for experienced practitioners. The watch out is that the training needs to be relevant and stretching
4 Capability development curve From the responses individuals can be segmented into five stages on a curve of their capability in their discipline % of respondents at each stage of category management capability Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 First steps Developing core Mixed ability Well developed Discipline specialist 32% 33% 35% 19% 30% 32% 5% 13% 12% 2% Cat man Shopper Insight 23% 10% 3% Category management individuals are the most confident role in their capabilities with over half at stage 4 and 5. Insight professionals come into their role ready to go with a good base level of capability however, few have reached stage 5. Only one in ten shopper marketers have reached stage 5 in capability. Source: IGD Category management capability survey June 2015
5 Three quarters of individuals believe they have enough training and experience to do their job successfully I have sufficient training and experience to do my job successfully Disagree Strongly disagree 3% 21% Agree Strongly agree 55% 21% I have had sufficient training on the tools available to me to do my job 4% 23% 57% 17% Most people agree that they have enough training and experience to do their job, however one in four disagree. Pressure on budgets appears as a recurring theme. % of respondents who agree they have sufficient training and experience to do their job successfully, by function However the challenge comes with the differing potential responsibilities for category management. When we are looking to build the roles and widen the influence of category management it can result in anxiety for individuals if training plans are not put in place. Category management Insight Shopper and trade marketing 75% 67% 84% Source: IGD Category management capability survey June 2015
6 Roles and responsibilities in Category management A strong focus on range review recommendations is influencing the top three responsibilities Suppliers with limited category capabilities are more likely to have responsibility for new product launches and trade marketing plans Less than half of suppliers have research and activity evaluation as responsibility of category management. Only one in ten have it as an established practice to evaluate category and brand sales impacts of different initiatives To push category understanding forward it is important to evaluate how effect initiatives are at influencing shopper behaviour, but all to often this doesn t happen as new projects take priority Over a third of companies don t have promotional recommendations as a responsibility however retailers saw this as a key area of focus for category management relationships with suppliers We asked supplier, In terms of category management what are your practitioners responsible for? Top 10 responses Range assortment recommendations Fixture space and layout recommendations Yearly/quarterly category performance reviews Category vision and strategies Regular reporting Promotional recommendations New product launches Shopper mission recommendations Shopper trials and research In-store activity evaluation 62% 56% 48% 88% 82% 81% 74% 71% Category management should be influencing all tactics targeting the shopper. There is an opportunity in many companies to extend the influence of category management, however individuals need the training and support to take on new responsibilities Source: IGD Category management capability survey June 2014
7 What to do next Where next for your experienced managers? A third of category management professionals are experienced senior managers. Are you one? Do you want to elevate your category management capabilities? Let IGD help Report author: Simon Attfield Category Insight Manager simon.attfield@igd.com As a result of attending this workshop you will: Next workshop: March 2016 Have a practical and in-depth understanding of the IGD five step category management process Be able to use a broad range of complex data sources as part of an end to end process to develop compelling shopper insights Know how shopper insights will inform the category opportunities and strategies that will underpin your category growth plans Learn to turn your plans and strategies into clear and effective category tactics that can be implemented to maximise profitability and return on investment Book you place your place now Need something else? shopper@igd.com or call +44 (0) Follow us on
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