Category Management Analytics

Identifying what really works in store

Getting the fundamentals of category management right at retail has never been more important than it is today.  While Shopper Research can provide additional insights to inform the retail fundamentals of shelving, assortment, pricing and promotion, retail analytics continue to be a vital foundation for shaping the most impactful execution.

GfK Category Management Analytics provides focused, fact-based answers to questions your sales team and retailers are asking every day. It's based on proven best practice approaches that have been applied across every aisle in the store and across both traditional consumer goods channels and non-traditional channels alike.

Unique benefits

There are numerous benefits to GfK’s approach to Category Management Analytics:

• Getting beyond the "what” to the "so what” and "now what”: Manufacturers can sometimes be paralyzed by the sheer quantity of available information, that analysis can get focused on strictly results-reporting rather than providing focused, clearly supported insights and recommendations 
• Total aisle and total store view:  It is critical to ensure that recommendations incorporate an understanding of impact, not just on the category or brand, but on the broader environment where these brands and categories participate
• Making the most of the data you have in hand: We’re experts at integrating available information from multiple sources (syndicated, retailer POS, household panel data, loyalty card data, existing shopper research) as fuel for analysis. We have also successfully worked in more difficult and limited data environments that render many off-the-shelf analytic tools inoperable
• Organization enablers: We specialize in driving insights to execution, maximizing the value of our analysis:

           1. Findings can be packaged into compelling selling

               presentations to fully leverage analysis within

               manufacturer-retailer planning discussions

           2. Easy-to-use desktop tools can make the complex simple

               and enable sales teams to customize the analysis for

               individual retailers

Example offerings

Shelf productivity analytics

Manufacturers hoping to exert some influence over a retailer’s category assortment decisions must have visibility to that retailer’s view of the shelf.

The goal of our productivity analytics is to replicate a retailer’s view of shelf productivity and even the playing field in the manufacturer/retailer dialogue.  Our highly customized category analysis drills down and "names names." Which brands are producing to justify their shelf space?  Which are not?  What changes in the product assortment would likely improve shelf productivity?  Analytic metrics typically include:

• $ per item
• Return on inventory investment (ROII)
• Inventory turns
• $ per linear foot
• Days of inventory on hand
• Average facings per item

Importantly, these metrics can be developed at any level of segmentation desired beyond just SKU and brand levels.  Projects also include identification of key implications to drive assortment recommendations.

 

Optimal promotion and pricing analytics

Companies pour billions of dollars into in-store promotional programs, often with limited understanding of what really works best and without true ROI.  We specialize in go-deep analytics that rip apart historical promotion events to identify best practices across all key elements including:

• Right products
• Right timing windows
• Right vehicles (TPR, display, ad, etc.)
• Right discounts (% off vs $ off vs BOGO, etc.)

Our proprietary analytical approach is highly customized to each category and brand to drive focus on the most relevant issues. Where spending data is available, an ROI perspective can be layered on to the base analysis to provide vital profitability perspective.  Projects also include identification of key implications of analytic findings to impact deployment of future promotional programs and spending.

In-market scorecarding

Leading manufacturers recognize the importance of measuring and quantifying the impact of their in-market initiatives.  The process of scorecarding impact is vital to build internal learning and continuous improvement, as well as enabling a leadership dialogue with engaged retailers in joint execution of vital initiatives. Starting with a brand’s annual plan and key objectives, formal scorecards are developed to track the most vital metrics in a concise tool that creates a common yardstick in evaluating performance.  Scorecards are highly customized to category/brand, but typically consist of a suite of tracking tools covering:

• Sales performance and incremental category impact
• Profitability and performance vs key financial goals
• In-store compliance
• Shopper impact

GfK can also remain engaged to efficiently update and data populate scorecard templates on an ongoing basis once they are developed.

Getting Started

To learn more about GfK Category Management Analytics, contact us today.

Category Management Analytics