Sustainable Superiority through Category Management Reinvention
Challenge
A significant regional food retailer with diverse market areas and many multi-channel competitors was comfortably operating in a position of leadership for quite some time. As years progressed, the retailer recognized it had lost its edge to competition and its solid marketing position had eroded. The effect resulted in reactionary and tactical decisions by the retailer. TPG was asked to help develop and deploy a consistent approach to category business planning that would drive both top-line and bottom-line performance. In addition, improving supplier relations and re-building the organization’s planning capabilities would be at the core of reclaiming its primary position.
Discovery
We began with a foundational assessment and then engineered a strategic plan for People, Process, Tools & Measures. Examining current roles illuminated a key element necessary to deliver transformation, thus creating the definition of strategic roles for all categories. Further investigation revealed pivotal shopper insights. This coupled with building new processes and identifying key supplier capabilities, laid the foundation for reversing the erosion. By the conclusion of our partnership, nearly 50 Categories and Portfolio plans were developed across all departments (Center Store and Fresh).
Impact
This collective reinvention delivered an average of 6%+ increased sales over run rate, while maintaining improved profit margin. In addition, Category Managers elevate to a more strategic level of thinking with a focus on “execution” critical to delivering long-term, sustainable growth. The final proof of progress was confirmed through improved supplier relations and expectations.
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