Shoppers have increasing power today. Logically then category metrics should focus on measuring shopper satisfaction. Unfortunately, many current metrics focus on the objectives of manufacturers and supermarkets i.e. maximise turnover, volume and profit. I suggest the industry will focus more on shopper loyalty as a key category metric. This will require a change in emphasis for the industry. The emphasis will be on what products and services drive shopper loyalty, not sales volume.
Yearly archives: 2021
8 posts
Omnichannel category management is an evolution in category management thinking. The fundamentals remain the same, but the thinking has changed because shopper behaviours have changed. The change in shopper behaviours is also driving change in how manufacturers and supermarkets best serve shoppers. The updated model places more emphasis on digital as digital influences buying decisions more now plus shoppers are buying more online.
Historically, much has been written suggesting larger companies, manufacturers and supermarkets, have power. Is this still relevant today? Is the market leader more powerful than a start up? Is Coca-Cola or Red Bull the category leader? Is Woolworths or Aldi driving change in supermarkets? Or does the shopper, via customer reviews on platforms like Amazon, now control the market?
Background Many manufacturers and supermarkets have made major investments into ‘big data’ to drive sales. For example, in April 2021 Woolworths bought a controlling stake in Quantium (from 47 to 75% shareholding) for $223M (AFR). In June 2021 Coles announced it would spend $2.5B on digital over 2 years […]
This brief blog explains the major differences in thinking of trading vs category management in the supermarket industry. For ease of use, Coles decision to sell 2 litres of P/L (private label) milk for $2, in 2011, will be used as an example. The same results are analysed with a different view to highlight the difference between a trading and category management mindset.
This quick blog highlights that range rationalisation does not always maximise profit. Retailers that have grown recently, including hard discounters and marketplaces, have up-ranged. Increasing shopper power, including the demand for personalisation, will continue the need to up-range. To maximise long-term financial results manufacturers and supermarkets should focus on meeting shopper demands, not range rationalisation.
This quick blog explains what, why and how manufacturers and supermarkets offer shoppers a personalised experience.
This quick blog will help explain how Australian supermarket buyers range private label (P/L) SKUs. Each retailer will have their own unique process / structure but many steps are similar. Normal steps include tender submission, award supply contract and then product supply.