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.
Tim Bowen
40 posts
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.
What’s more important, one-on-one relationships with shoppers (personalisation) or the relationship between a manufacturer and supermarket (category management)?
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.
This blog explains there are a wide variety of different styles of category relationships that are successful.
Background COVID-19 did change the manufacturer / supermarket relationship in the short term. Traditional business practices, e.g. face to face meetings, were not physically possible during lockdown / restrictions. This quick blog suggests these changes are part of a long-term evolution of the manufacturer / supermarket relationship from personal to […]
This quick blog highlights that a category management mindset, i.e. category management is a way of thinking, is more important than the process, data used etc. Hard discounters and P/L manufacturers have been able to successfully grow their sales / share by focusing on meeting shopper demands. Hard discounters and […]
Background The Coronavirus Crisis (CVC) highlighted some on-going challenges the supermarket industry faces. This blog will highlight that an over reliance on ‘the system’, historical data and a limited understanding of shoppers created shopper dissatisfaction during the CVC. For ease of use this blog will regularly refer to Woolworths. […]
Grocery shoppers have been slow to embrace online ordering / delivery. What has changed is that grocery shoppers are using more digital during the decision-making process. To assist shoppers during the decision-making process supermarkets are now offering in-store apps as part of their overall omni-channel retail strategy. Importantly these apps empower shoppers and allow supermarkets to offer an improved CX (customer experience).
This blog explains the GFC was a catalyst that created a long-term change in shopper behaviour. 'Value' is now more important for the supermarket industry.