Category Management Case Studies « The Partnering Group

Category Management Case Studies

Title

Shopper Engagement – Deli Manufacturer

Client Description

Deli Meats Manufacturer

Background

Category presented to the Shopper in a traditional way, by Brand and product type
The category layout made it difficult to shop, with too much clutter and noise and the category was underperforming versus expectations

Objective

TPG led a shopper-driven research study and re-merchandising project to understand how shoppers shop the Deli Counter

TPG Approach

Research revealed that the shopper shops by meat type and not by brand but that certain brands play an important role in providing a quality assurance
A completely new category segmentation and merchandising layout was developed
The assortment was changed with removal of duplicate tertiary brands, with more presence for the leading Brands
TPG also led interface projects with major retail customers

Impact/Results

7.5% category growth after deployment of layout and assortment recommendations at key retailers

Title

Developing Breakthrough Promotion Events

Client Description

Industry Leading Food Grilling Company

Background

Promotion planning lacked differentiation and innovation
Little guidance provided to sales organization
Very deal driven and tons of IRC’s
No Channel differences
No Alliances

Objective

Manufacturer in search of new Promotion Effectiveness process and results
Focus on significantly growing brand sales while being more efficient and effective in spending

TPG Approach

TPG led a successful “Promotion Effectiveness” project
Development of new Promotion plan for the Brand ; Event (Blueprint) guidance around product, pricing, timing, etc.
Development of new Promotion/Merchandising Alliances
Created Channel & Customer tailoring

Impact/Results

Grew Brand from $100MM to $500+MM
Created differentiated events
Able to create market harmonization
Efficient Trade Spending
Created Manufacturing capacity constraints

Title

DVD Sales Growth Through New Shopping Experience

Client Description

International Entertainment Manufacturer – Blu-ray/DVD

Background

Category had developed in the Grocery channel but the presentation of the category was very functional and old fashioned with large assortment and merchandising that had very little entertainment value.
Large volumes were being sold on deal.

Objectives

TPG led a shopper centricity project to understand shoppers in the grocery channel and to define the right assortment and layout recommendations, to enhance the value in the category.
The second objective was to help the client to be seen as category thought leaders by the retailers.

TPG Approach

Shopper insights enabled the team to develop an industry leading shopping experience for the Category, with new fixtures, shopper communication and category segmentation.
The assortment was simplified and presented to the shopper to reflect the way that shoppers make their selection and purchase for Blu-ray and DVD.

Impact/Results

9% category growth after deployment of new fixtures and layout.
12% increase in space and sales for the manufacturer.

Title

European Category Vision and Activation Toolkit

Client Description

Consumer Products Company – Europe (35 Countries)

Background

The consumer products company, a market leader, needed to take category-based approach to unlock the massive sales potential across Europe, in markets with varying levels of trade sophistication.
Some countries had developed local category drivers on their own but they were were either below best practice or were not aligned to the direction of the category at European level.

Objectives

To develop a pan European category vision and driver menu, along with market activation tools to launch the approach across 30+ countries.
To align client Brands with the category vision and drivers, to enable the Brands to drive category growth.
To build the skills of category and customer teams in the markets, to deliver this way of working, build category partnerships with customers and drive business performance.

TPG Approach

A cross market client team worked with TPG to identify pan-European insights and develop a menu of Category Drivers, tactical initiatives and guidelines that covered all channels and market types.
A comprehensive toolkit was developed, including market assessment, Driver selection and customer presentations. This was then deployed across markets through regional workshops to enable local markets to use the toolkit immediately in their business.

Impact/Results

Enabled the clients leadership position across many markets, and a change in behaviour and approach in managing the category with customers, leading to immediate gains for the category and the client Brands.

Title

Category Leadership Through Shopping Experience

Client Description

A leading North American Food Manufacturer.

Background

Manufacturer was faced with a category that was seen by shoppers and consumers as dated, hard to shop and products that were not fresh looking. The category had excess assortment and was organized strictly by product and package type. The category was also under pressure by adjacent categories looking for increased space.

Objectives

Create a go-to-market platform to deliver shopper and consumer preferred assortments, section layout and in-store excitement and attractiveness. Increase sales in a category that was losing share to prepared foods and perimeter departments.

TPG Approach

Leveraging TPG’s proprietary Category Leadership Program approach a “shopping experience excellence” project was developed. Research and shopper insights revealed that meal occasion was the primary method of shopping the category. Further research and testing led to insights that identified key shopper triggers that drove multiple purchases across key segments within the category. TPG led multiple retailer interface projects with key retailers to test customized assortments and section arrangements.

Impact/Results

New department and category layout delivered shopper preferred shelf sets and these occasion-based arrangements delivered increased category sales. New insights-driven merchandising strategies drove improved lift and cross-segment purchasing. Key retailers adopted the new insights-driven arrangements and product assortments, creating in-store shopper excitement and increased sales +6%.

Title

Operational Excellence Drives Accelerated Growth

Client Description

A leading global Dairy and Food Manufacturer.

Background

Manufacturer was seeking solutions to deliver operational excellence, category sales growth and innovative new merchandising programs. Manufacturer was slow to market in key new consumer preferred segments and not regarded as the category thought leader. The category was under sever pressure from other categories within the dairy aisle seeking expansion in space and assortment.

Objectives

TPG Approach

Using TPG’s proprietary Category Leadership Program approach a go-to-market platform was developed and implemented for four retail channels and leading retailers. Research and shopper insights revealed shopper confusion and high levels of frustration driven by high out-of-stock levels . Additional research led to insights that identified unmet consumer needs within the category. TPG led multi-functional teams to identify key manufacturing and operational changes that would benefit the retailer, shopper and manufacturer.

Impact/Results

A new category vision was developed to double category consumption in the US over a five year period. Manufacturer is now aggressively leveraging this new strategic go-to-market platform across all channels of trade with great success. New initiatives resulted in innovative concepts for operational excellence, (including new shelf design and retail-ready case packs) shoppability and new occasion-based merchandising programs, creating in-store excitement and sales growth.

Title

Category Focus Fuels Integrated Planning

Client Description

A leading global CPG Manufacturer.

Background

Manufacturer was in need of a new insights-based, go-to-market strategic platform. Manufacturer was under heavy competitive pressure and needed a platform to facilitate joint business planning with key retail customers to reverse declining sales trends.

Objectives

Develop a market-ready strategic platform for five channels of trade, across three major consumer categories. Strategic platform needed to deliver channel specific shopper and consumer insights along the path-to-purchase. Increase overall sales performance and create greater internal alignment between key functions, departments and brands.

TPG Approach

Deploying TPG’s proprietary Category Leadership Program approach, a go-to-market platform was developed and implemented for five retail channels and leading retailers across three categories. Leveraging TPG’s ”3 D” methodology and tools, a plan was developed to identify key shopper and consumer insights across five channels and three categories. Research findings and shopper insights revealed shopper confusion and frustration driven by section layout and packaging graphics and communication. TPG led multi-functional teams to identify key internal process changes and external changes that improved current joint business planning processes.

Impact/Results

Manufacturer is leveraging a new strategic go-to-market platform across all channels of trade in three categories, resulting in a new voice to the customer and greatly improved planning results. CLP approach created greater internal team alignment, new integrated business planning process, and increased sales results. ROI target was achieved within three months of program launch.

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