CategoryManagementUnderstandingtheconsumeraskeytosuccess

DionisioSeissusGarcíaAnaCláudiaFiorattiESOMAR,México–October2004ConsumerPanelMethodologyContinuousResearchthathasthemainobjectivetounderstandthesamegroupofhouseholds,thespontaneouspurchasebehaviorofconsumers.DiaryPurchasesofmorethan70massconsumptioncategories(Food,HouseholdCleaning,PersonalCareandNonAlcoholicBeverages)LatinAmericanCoverageCoverage:14CountriesSample:25,000HouseHoldsCategoryManagementAnalysis Opportunitiesformanufacturesandretailerspermitingto

:IdentifythecustomersofaChainA,evaluatinginwhichotherchannelsofdistributionandsupermarketchainstheyalsodotheirpurchases

KnowthebuyersloyaltylevelofaChainA,searchingforpossiblecategoriesorproductportfoliosmixedbusinessopportunities

Quantifythe“lostbusiness”ofChainA:Whotherealcompetitorisattheconsumermomentofdecidingtopurchase?

Howmuchcouldbegainedinsales,whenaconcretemarketingstrategyisdevelopedtorecoverthelostexpense?BenefitsofthetoolspresentedPhasesofCategoryManagement10million100million40millionCategoryVolumeoftheChain:Chain’smarketshareCategoryVolumeinallchannelsofdistributionCategoryVolumemadebythechains’customers10millionOnlyasmallproportionoftheChain’sconsumers,buythecategoryatthesamechainAssessmentoftheChain’sSalesVolume1.Knowthebusinessvolume,thechains’smarketshare,andthecustomersoftheespecificchainTheloyaltyis25%thentotalpotentialis30million.LoyaltyoftheChain’sSalesVolume2.Measurechainloyaltyindeterminedcategoryandtheexpensecompetitor’slossWhichchainsandchannelsofdistributionarethe“receivers”ofConsumersChainXlostexpenses?51015202030ChainAChainBChainCChainDChainEOthersAssessmentofthelostexpensesofChainX(%)3.Expenseanalysis7525LoyaltyLostExpensesWheredoestheChainXstandatthemoment?Whatshouldwefocusontoattractmorecustomersorkeeptheloyalcurrentone?HIGHPOTENTIALLOWPOTENTIALManycategorybuyers,whobuyelsewhere.Fewcategorybuyers,whobuyelsewhere.Manycategorybuyers,buyingatChainXFewcategorybuyers,whohoweverbuyatChainX.OPPORTUNITIESSTRENGTHSWEAKNESSPROFIT/GAINSLOWLOYALTYHIGHLOYALTY4.Knowthechainandcompetitors′positioningMarketPotencialEvaluation5.MeasurethemainfactorswhichgeneratelossesItestablisheswhethertheseslossesaretheresultsofsensitivitytoprices,promotionsandadvertisingactivities,etc.Thisanalysisisbasedontimeperiodsthathaveshownsignificantchangesinthechainmarketshare,whenevaluatingone’schainactionsandcompetitors.6.Knowdifferentcustomergruopsinthechain(targets)Asthemarketisincreasinglycompetitiveitisclearlyimportanttoidentifythecustomergroupswhicharecontributingnegativelyforthechain’sresultsandfocusone’saimonthesespecificconsumers,attractingandmakingthemloyal.7.Makethecorrectdecisionstokeepandimprovethechainmarketshare,andworkmorecloselywithmanufacturerstoenhancebettersalesandprofitresults.TheLatinAmericanConsumer:ComparingtheArgentinean,BrazilianAndChileanAnalysisThroughtheConsumerPanelinformation,theCategoryManagementmethodologyisanalizedfor:HairCareCategory(ShampooandHairConditioners)InArgentina,BrazilandChileinaspecificChain,mentioned:ChainADuringtheperiodbetweenJuly2003andJune2004Sample:11,100householdsRelativeimportanceofPersonalCarebetween9%-10%oftheFMCGtotalHairCarerepresentbetween2%-3%ofthetotal,beingofgreatrelativeimportanceinChileDifferentmarketshareofShampooinHairCareperCountry:Brazil46%;Argentina35%andChile29%1.GeneralDiagnosisShareofMarket:FMCG,PersonalCareandHairCare(%Value)ArgentinashowsasmallermarketshareforSupermarketsBrazilandinChilemorethan60%ofpurchasesaredonebythischannel1.GeneralDiagnosisShareofMarket––DistribuitionChannelsFMCG(%Value)Greatparticipationofpharmacies/drugstores,directSalesanddoortodoorchannelinallcountries1.GeneralDiagnosisShareofMarket––DistribuitionChannelsPersonalCare(%Value)AthirdpartofpurchasesinthesecategoriesoccursoutofthesupermarketchannelInArgentinatheimportanceofTraditionalChannelisconsiderablyhighShareofMarket––DistribuitionChannelsHairCare(%Value)1.GeneralDiagnosisConsumersbuyHairCareinChainA:42%inArgentina27%inBrazil51%inChile2.ImportanceofBuyersatChainAandHairCare(%)3.LostExpensesandLoyaltyBuyersofChainALoyaltyinHairCarebuyersofChainA:17%inArgentina10%inBrasil27%inChileTraditionalChannelandPharmacies/Drugstoresrepresentalmost50%oflostexpenseinHairCare.ThemostimportantsupermarketcompetitorisChainB,withonly8%oftotalexpense4.LostExpensesinHairCareBuyersofChainAArgentina31%ofthelostexpensesisoutofSupermarkets;Pharmacies/Drugstores,Departmentstoresanddoor-to-doorchannels4.LostExpensesinHairCareBuyersofChainABrasilCompetitionisamongdifferentsupermarketschains.34%oflostexpensecomefromChainB4.LostExpensesinHairCareBuyersofChainAChileTheChainAisplacedwithafewbuyersofHairCare,butthesupplyhappensinsidethechain.Goodrelativeloyalty5.ChainandChannelsPositioningofHairCare’sMarketPotentialandLoyaltyEvaluationArgentinaSTRENGTHSPROFIT/GAINSOPPORTUNITIESWEAKNESSLowloyaltyandlowpotential,HairCarepurchaseisdoneoutofChainA5.ChainandChannelsPositioningofHairCare’sMarketPotentialandLoyaltyEvaluationBrasilSTRENGTHSPROFIT/GAINSOPPORTUNITIESWEAKNESSSimilarpositionofArgentina,butmuchcloserinpotentialwiththeirmaincompetitors––ChainBandOtherSupermarkets5.ChainandChannelsPositioningofHairCare’sMarketPotentialandLoyaltyEvaluationChileSTRENGTHSPROFIT/GAINSOPPORTUNITIESWEAKNESS6.LostExpensesDistributionofChainAamongHairCare’sbuyersandnonbuyersBrazil––opportunityinbuyerofChainAandnonbuyerHairCarewhichconcentrate76%oflostexpenseis19,1%ofhouseholds7.SocialEconomic,demographicProfileandLifeStyleofChainAbuyersArgentinaGreaterconcentrationofmiddleclasspeopleHousewifeswhoboughtHairCareinthechainareyoungerthanthosewhodidn’tbuyMosthouseholdsdidn’tbuyHairCareinthechainwithoutchildren7.SocialEconomic,demographicProfileandLifeStyleofChainAbuyersBrazilBuyernotboughtHairCareinChainA:HigherLowLevelHouseholdswithoutchildrenTwodifferentgroupsofbuyers:BuyersnotboughtHairCareinChainA:lowersocial-economiclever,olderhousewives,withchildren,housewivesseekingforbalancedbetweenqualityandpriceBuyersboughtHairCareinChainA:highersocial-economiclever,youngerhousewives,indifferentpurchasestyle7.SocialEconomic,demographicProfileandLifeStyleofChainAbuyersChileObjectiveContinuousComparativeResults(periodsandcountries)Microanalysis(onecategory)andMacroanalysis(groupofcategories)EasyAdvantagesofCategoryManagementfromConsumerPanel9、靜夜四四無鄰，，荒居舊舊業貧。。。1月-231月-23Thursday,January5,202310、雨中黃葉葉樹，燈下下白頭人。。。03:04:0203:04:0203:041/5/20233:04:02AM11、以我獨沈久久，愧君相見見頻。。1月-2303:04:0203:04Jan-2305-Jan-2312、故故人人江江海海別別，，幾幾度度隔隔山山川川。。。。03:04:0203:04:0203:04Thursday,January5,202313、乍見翻疑疑夢，相悲悲各問年。。。1月-231月-2303:04:0203:04:02January5,202314、他鄉生白發發，舊國見青青山。。05一月20233:04:02上午03:04:021月-2315、比比不不了了得得就就不不比比，，得得不不到到的的就就不不要要。。。。。一月月233:04上上午午1月月-2303:04January5,202316、行動出出成果，，工作出出財富。。。2023/1/53:04:0203:04:0205January202317、做前，能夠夠環視四周；；做時，你只只能或者最好好沿著以腳為為起點的射線線向前。。3:04:02上午3:04上上午03:04:021月-239、沒有失敗敗，只有暫暫時停止成成功！。1月-231月-23Thursday,January5,202310、很很多多事事情情努努力力了了未未必必有有結結果果，，但但是是不不努努力力卻卻什什么么改改變變也也沒沒有有。。。。03:04:0303:04:0303:041/5/20233:04:03AM11、成功功就是是日復復一日日那一一點點點小小小努力力的積積累。。。1月-2303:04:0303:04Jan-2305-Jan-2312、世間成成事，不不求其絕絕對圓滿滿，留一一份不足足，可得得無限完完美。。。03:04:0303:04:0303:04Thursday,January5,202313、不知香積積寺，數里里入云峰。。。1月-231月-2303:04:0303:04:03January5,202314、意志志堅強強的人人能把把世界界放在在手中中像泥泥塊一一樣任任意揉揉捏。。05一一月月20233:04:03上上午03:04:031月-2315、楚塞三湘湘接，荊門門九派通。。。。一月233:04上上午1月-2303:04January5,202316、少少年年十十五五二二十十時時，，步步行行奪奪得得胡胡馬馬騎騎。。。。2023/1/53:04:0303:04:0305January202317、空山新雨雨后，天氣氣晚來秋。。。3:04:03上上午3:04上上午03:04:031月-239、楊柳散和風風，青山澹吾吾慮。。1月-231