Carrefour and P&G Category Management project -

detergents

G.Beta - Carrefour L.Girlea - P&G

Category Management:

Joint focus of Trade/Industry to meet Consumer needs

Benefits:

For consumer – oriented on his needs, the shopping is easier and more attractive

For trade – develop the business, increase efficiency, build profit, attract new shoppers

For supplier – consumer oriented, customer oriented, builds on our strength

Principles:

Consumer focusedData basedCollaborativeOpenness & trustTotal system approach

Joint project

Why Detergents? Why P&G? Why Carrefour?

Detergents category:

Big number of SKUs Limited shelf space Frequent OOS High turnover Traffic builder

P&G:

The biggest supplier in this category Category expertise

Carrefour:

The leader in hyper format Consumer oriented Strategic partnership

Objective:

Reduce out-of-stock in the category Increase turnover for the category Make the shopping decision easier for

Carrefour shoppers

Resources:

Provided by Carrefour: Raw data - Sales and Turnover per item In-store implementation

Provided by P&G: Shopper study/shopper profile Shelf technology/expertise

Steps of the process:

Category definition/analysis:

Detergents: Structure: auto, handwash, special Assortment classifying Volume/value share vs. market

Category scorecard

Steps of the process:

Category scorecard- example  Sales Margin Share

Detergents      

Auto      9 kg      6 kg      

Manual      450g      600g      

Steps of the process:

Category strategy: Build traffic – increase the number of

purchases Build transactions –increase the size of

the average transaction

Key Measure: Volume share

Steps of the process:

Category tactics:

efficient assortment Determine the SKUs accounting for

80% of the sales and turnover. Determine the SKUs that are

“unproductive” in terms of both sales and turnover

Steps of the process:

Category tactics:

efficient shelving According to volume share - determine

the right shelf share per category, per size and per SKU

According to shopper decision tree/shopper psychology

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It really works…!!!It really works…!!!

Category

Streamlined assortment 15% less SKU’s

Out-of-stocks < 7%

Turnover increase 14 %

It really works…!!!It really works…!!!

Continuous process:

efficient pricing Margin Mix

efficient promotions

Long term joint business plan