Category Management in Transition, According to ACNielsen Study.SCHAUMBURG Schaum·burg A village of northeast Illinois, a suburb of Chicago. Population: 74,900. , Ill. -- Practice Still Viewed as Critically Important; Traditional Tools Decreasing in Use Category Management is in a period of transition, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. new research from ACNielsen ACNielsen is a global marketing research firm, based in Schaumburg, Illinois. This company was founded in 1923 in Chicago, Illinois, by Arthur C. Nielsen, Sr., in order to give marketers reliable and objective information on the impact of marketing and sales programs. U.S. The company's 14th Annual Trade Promotion Practices and Emerging Issues Study found that, while manufacturers and retailers continue to rate category management as "critically important," they are using the traditional tools of category management less often. Category Management is a core business practice in the consumer packaged goods Noun 1. packaged goods - groceries that are packaged for sale foodstuff, grocery - (usually plural) consumer goods sold by a grocer plural, plural form - the form of a word that is used to denote more than one (CPG CPG central pattern generators. ) industry in which individual product categories are managed as separate business units. As indicated in the chart below, manufacturers and retailers cited category management as one of their most important issues. Percentage That Identified Issue as Critically Important ---------------------------------------------------------------------- Manufacturers Retailers --------------------------------- --------------------------------- Promotion Promotion Efficiency/Effectiveness 99 Efficiency/Effectiveness 98 --------------------------------- --------------------------------- New Product New Product Introductions/Implementation 91 Introductions/Implementation 98 --------------------------------- --------------------------------- Category Management 89 Category Management 98 --------------------------------- --------------------------------- Variety/Assortment 87 Variety/Assortment 98 --------------------------------- --------------------------------- Understanding the Consumer 84 Space Management 93 --------------------------------- --------------------------------- Private Label 81 Private Label 90 --------------------------------- --------------------------------- Trade Partners/Vendor Trade Partners/Vendor Relationship 81 Relationship 90 --------------------------------- --------------------------------- Space Management 79 Customer Loyalty/Retention 90 --------------------------------- --------------------------------- Customer Loyalty/Retention 74 Understanding the Consumer 83 --------------------------------- --------------------------------- Frequent Shopper/Loyalty Making the Retailer a Brand Programs 57 83 --------------------------------- --------------------------------- While category management continues to be viewed as important to both manufacturers and retailers, when asked which of several category management processes or tactics they utilized in 2004, both sides reported decreased use of almost every one. Manufacturers Retailers ----------------------------- ------------------ ------------------ Included as part of its category management process: 2002 2003 2004 2002 2003 2004 ----------------------------- ------------------ ------------------ Assortment Planning 85% 91% 90% 73% 96% 86% ----------------------------- ------------------ ------------------ Promotional Planning 80% 85% 84% 83% 90% 86% ----------------------------- ------------------ ------------------ Shelf Management 89% 95% 82% 83% 94% 81% ----------------------------- ------------------ ------------------ Category Business Planning 82% 87% 82% 68% 92% 81% ----------------------------- ------------------ ------------------ Everyday Low Pricing 80% 74% 76% 60% 82% 67% ----------------------------- ------------------ ------------------ Frequent Shopper/Loyalty Programs 48% 51% 41% 45% 51% 43% ----------------------------- ------------------ ------------------ Micro-Merchandising 34% 39% 31% 30% 41% 43% ----------------------------- ------------------ ------------------ Micro-Marketing 23% 33% 23% 30% 45% 38% ----------------------------- ------------------ ------------------ According to Rob Holland, ACNielsen senior vice president, Retail Marketing, the study results suggest that category management is in a time of transition. "There's a lot of experimentation going on right now, with manufacturers and retailers searching for the most impactful, yet cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. , overall planning process and merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. and marketing techniques. One surprise was the fact that less than 85% of all companies surveyed rated 'Understanding the Consumer' as a critically important issue. We believe that category management needs to begin with a complete understanding of the consumers that CPG companies are trying to serve." Among other findings in the trade promotion practices study, the gap between manufacturer perceptions of the value they receive in return for their trade promotion spending and retailer satisfaction with the amount of such funding they receive continues to narrow. Thirty-five percent of manufacturers indicated that they receive excellent or good value from their trade promotion expenditures - up from 31% in 2003. By contrast, 36% of retailers indicated that the share of manufacturer trade promotion dollars they receive is sufficient or more than enough - up from just 22% in 2003. Holland said, "This is a noteworthy improvement, but, clearly, a significant gap still exists, with manufacturers and retailers needing to better align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. their trade promotion efforts." The 14th Annual ACNielsen Survey of Trade Promotion Practices was conducted during March 2005 and is based on responses from executives at 42 retail organizations and 90 manufacturer companies. The full 100-page report is available for $495 by going to http://store.vnuemedia.com/acn/store/index.jsp. ACNielsen, a VNU VNU Volontaires des Nations Unies (French) VNU Verenigde Nederlandse Uitgeversbedrijven (Dutch) VNU Virtual Network User business, is the world's leading marketing information provider. Offering services in more than 100 countries, the unit provides measurement and analysis of marketplace dynamics and consumer attitudes and behavior. Clients rely on ACNielsen's market research, proprietary products, analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns Noun 1. sales campaign - an advertising campaign intended to promote sales ad blitz, ad campaign, advertising campaign - an organized program of advertisements sales campaign n → campaña de venta . Note to editors: Look for this press release and other ACNielsen news on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://acnielsen.com/news/. |
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