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.
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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.