Category Management
Knowhow’s Category Management Package enables our clients to explore the language of shoppers through research, analyze big data of shopper and product groups, and develop a shopper-centric-product matrix. Our strategic and tactical recommendations also include store-level assortment strategies, a category growth plan, and a scorecard for measuring performance. Partner with Knowhow today to benefit from our expertise in Category Management and elevate your business operations to better understand and serve your shoppers.
| Sections | Explanation |
| External Shopper Research | We are specialized in conducting comprehensive research and analysis of target markets, shoppers, and segmentation based on factors such as age, income, location, culture, and ethnicity. Our analytical insights findings are then matched with our client’s existing product categories to identify opportunities for growth and development. |
| Big Data and Insight Generation | We uncover unmet needs and opportunities for product development by analyzing the client’s data to identify emotional factors that drive buying decisions, missing opportunities that can be addressed through new offers, and the location of communication channels that influence buying decisions of shoppers. |
| Shopper-Mix Segmentation | We are expert in identifying and segmenting the existing shoppers of our clients based on their buying behaviours and product preferences. By analyzing key metrics such as profitability, seasonality, conversion rate, frequency, and volume, we provide strategic insights at the store, city, region, and country level to help our clients better understand their shoppers and achieve their business goals. |
| Product-Mix Segmentation | During the process of Product-Mix Segmentation, we analyze diverse product groups of our clients and segment them based on their unique characteristics to create meaningful categories. By doing so, we provide our clients with a structured approach to category management, allowing them to better understand and meet the needs of their shoppers. |
| Shopper-Product-Category Matrix (CPC) | Our Shopper vs Product approach is the key to unlocking the full potential of your product offerings. By analyzing the characteristics and buying behaviours of your shoppers, we can develop a customized category and assortment strategy that is tailored to your unique business goals. This allows you to optimize your product mix, increase sales conversion rates, and maximize profitability. Our data-driven approach takes into account factors such as shelf life, proportions, width and depth, visual merchandising, stock level, reorder points, and lead time to ensure that your products are always available and appealing to your target audience. |
| Store-level Product Assortment Strategy | Our store-level product assortment strategy development focuses on tailoring a customized approach to specific stores based on shopper behaviours and characteristics. We analyze key factors such as shelf life, proportions, width and depth, visual merchandising, stock level, reorder points, and lead time to optimize sales conversion rates and increase product availability while minimizing excess stock. Our strategy development process is highly effective in ensuring that each store has the right products on their shelves to meet their unique customer demand, resulting in increased profitability and customer satisfaction. |
| Listing & Visibility Planning | Our team can develop a store-level SKU listing plan that optimizes the visibility of your products and increases sales. We will work with you to create a category-based visibility plan that focuses on planogram strategies, shelf share, and other key factors to ensure that your SKUs are prominently displayed and easy for customers to find. Our approach is based on careful analysis of shopper behavior and characteristics, as well as product data such as shelf life, proportions, and lead time. By optimizing your SKU listing and visibility, we can increase sales, improve customer satisfaction, and reduce excess stock. |
| Category Management Strategy (growth plan) | For a Category Management Strategy, our team develops growth plans for categories that focus on the needs and behaviours of shoppers. We analyze data on target shoppers, their buying behaviours, emotional drivers, and unmet needs to identify growth opportunities. Based on this analysis, we develop SMART growth plans and action plans to help our clients increase sales and optimize their marketing strategy. Our growth plans provide a clear roadmap for translating marketing goals into tangible sales outcomes, and we work closely with retailers to ensure effective execution. |
| Category Management Scorecard | To measure the category management success of our clients, we develop category-focused key performance indicators (KPIs) with a relative dashboard for regular review and analysis. Our KPIs include, but are not limited to, Gross Margin Return on Investment (GMROI), Activity-Based Costing (ABC), Sales Conversion Rate, and Average Transaction Rate. By tracking these metrics, our clients can gain a better understanding of their category performance and make data-driven decisions to optimize their assortment strategies, product placement, pricing, and promotions. The dashboard provides a clear visualization of the KPIs and offers insights for continuous improvement. |
| Category Management Workshop | Our team offers 2 to 5 day workshops to teach Category Management techniques and processes, along with sharing guidelines to help your employees improve their skills. We’ll provide you with customized toolkits and practical examples, so your team can learn how to optimize sales by focusing on the most profitable products and target shoppers. Our experienced trainers will help your team understand how to develop category-based visibility plans, store-level assortment strategies, and SKU listing plans that align with your overall growth objectives. During the workshop, we’ll also cover the development of Category-focused KPIs, such as GMROI, ABC, Sales Conversion Rate, and Average Transition Rate. By setting these KPIs, you can regularly review and analyze your category management progress and make data-driven decisions that lead to increased profitability. Our workshops are designed to be interactive and engaging, so your team can learn and apply the techniques in a collaborative environment. We believe that a well-trained team is essential to the success of any category management initiative, and we’re committed to supporting your team achieve their full potential. |