Category management strategy for global groceries chain
Case study:
Category management strategy for global groceries chain
Situation
Leading international groceries chain sought to review its non-food category offering
Aimed to enhance innovation, promote cross-country centralization and improve multi-channel propositions
Objective was to optimize the non-food category strategy, improve sourcing efficiency and enhance customer experience
Actions
Performed comprehensive benchmarking against competitors and specialist retailers
Analyzed various aspects including product assortment, pricing, merchandising and customer experience
Identified best practices and gaps in the client’s current offering
Identified country-specific characteristics and built clusters of comparable countries considering factors such as consumer preferences, competitive positioning and strategic importance of the non-food business
Defined strategic roles for each non-food category group – margin drivers, local accentuation, or drive-to-store
Explored sourcing/procurement models like full category management, catalogue buying and supplier bundling and feasible approach per international country cluster
Assessed the feasibility, advantages and risks of each model in the client’s specific context
Built a comprehensive business case with expected savings from improved conditions and operational efficiencies
Developed a detailed implementation plan
Results
Secured management endorsement for the proposed non-food strategy on central an country level
Achieved organizational alignment around a common non-food category vision
Delivered a compelling business case highlighting financial benefits from improved sourcing conditions and stronger assortments
Kicked-off staffing of new central non-food organization with with necessary skills and expertise
Initiated global implementation of the non-food strategy
Developed a phased roll-out plan for smooth adoption
Established a governance structure and performance metrics for progress tracking
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