Potential benefits

Our experience has shown that the implementation of an effective category development framework can transform your business and the category in which it operates to a more profitable and viable investment for both you and your retail partners.

The case studies included in this website highlight the mutual manufacturer-retailer benefits that can be achieved when undertaking a category perspective in generating your brand strategies.

The table below seeks to summarise the actions required by what Categoracle considers to be the four levers of driving growth at the point of purchase and the resulting potential benefits for both manufacturers and retailers.


Potential manufacturer-retailer benefits:

Lever

Recommendation

Benefit

Range

  • A core range of clearly defined brands and SKUs representing the right level of consumer choice
  • Minimum brand representation at the entry level (own label and one brand only)
  • Width rather than depth of range
  • Value created for the manufacturer through reduced ‘squeeze’ from bottom end
  • Value created for retailer through decreased inventory, increased stock velocity (per SKU ranged) and increased sales through greater segment coverage

Price

  • Taking the perspective that the consumer is looking for best value rather than cheapest and selecting range to accommodate price bands
  • Introducing new range that shifts consumer focus to higher price bands and increased category profits
  • Value created for the manufacturer as the focus becomes about great products for good value in each of the price bands
  • Value created for the retailer as the in-store focus shifts from the cheapest to products offering consumers the best value

Promotion

  • A clear promotional strategy moving away from an entry level/price fighting focus to one of consumers buying better, encouraging trade-up to higher quality products
  • Champion high end price band new innovation to create excitement and value
  • Value created for the manufacturer as shoppers are traded up to the added value brands/SKUs and ‘true’ innovation is rewarded
  • Value created for the retailers as shoppers spend more dollars in-store

Layout

  • Understand how consumers shop and provide them with a logical layout and flow of products reflecting their decision-making processes
  • Provision of information to aid in the purchase decision
  • Preferential positioning of category profit driving brands and sub-categories
  • Value created for the manufacturer as added value brands/SKUs are positioned favourably in-store
  • Value created for the retailer through creating greater shopper appeal and encouraging trade up to higher value sub-categories