As a manufacturer, having an effective category vision is essential. It ensures that you are considering your role in ensuring that the shopper’s needs are met at the point of purchase.
It will also help lead to the tailored implementation of the right range, space, promotions, layout, merchandising and marketing based on identified needs and the way that shoppers shop.
For the retailer, it means the manufacturer is adding value to the relationship with the retailer by identifying short- and long-term, quantified strategic opportunities for the category rather than just its individual brand.
As the retail multiples’ hold on the market grows, the battle for shopper loyalty will become increasingly vital. If a supplier can develop its offering based on category insights that demonstrate how to influence the shopper at the point of purchase, the opportunity for success could be significant.
It’s essential that suppliers are able to demonstrate to retailers how they can make their category work for shoppers and grow incrementally. This will allow suppliers to develop and maintain a positive working relationship with the large retailers.
Effective category development should focus on the major drivers and tactics that will increase value and often volume. It should be underpinned by consumer and shopper research, and data-driven insights that allow the retailer to take advantage of the manufacturer’s expertise in category development in order to drive incremental sales.
Manufacturers should be identifying short- and long-term quantified strategic opportunities for the category and the brand. This will increase expertise and multidimensional levels of influence in the category, leading to brand growth ahead of the category. It also provides a pragmatic internal plan of action for brand development.
Suppliers that fail to implement an insightful and effective category strategy risk a declining relationship with the retailer, with less influence on category agenda.
It maintains your position as a strategic partner rather than consigning you to the outposts of being merely a tactical supplier.
Suppliers who fail to act on category insights may find that competitors move ahead of them and exploit new opportunities.
John Nevens is joint managing director of shopper marketing and category & customer management specialist Bridgethorne.
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