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CATEGORY MANAGEMENT
PARTNERSHIP
• 12 cities • 15 hypermarkets• 4’569 – employees• 122’995 м² - sales area
International practice Global Corporate Culture
Customer-oriented approach Complete Satisfaction of Customer Expectations
Success oriented Business Thought
Ambitious Drive for Steady Increase
Innovative Retailing Force
today…
Source: www.real.ru ; www.planetretail.net
Real HypermarketsNo. of Stores, 2006-2010
15
• Unique family company on the alcohol market (6-th generation at the head of the Company)
• Heritage of 150th history of the Company
• Biggest Premium Spirits importer in Russia
• Unique premium spirits portfolio
Mission
• Leadership in brand promotion in Russian Premium Spirits industry
• Guide to world-famous alcohol cocktails drinking
- Member of BACARDI-MARTINI Group
Partnership in Category Management
From Bacardi Rus side From Partner side
Qualitative execution
Education / Consultation
Analytical approach
Shopper Insight
Customer-oriented approach
Category Category ManagementManagement
Strategic approach
Main principles
Partnership goals:
• Joint Premium Spirits category development
• Category growth
• Assortment optimization
• Creation of shopping best practice
Category Management Background
Frequent change of purchase
behavior
Growth of competition
Insufficient customer-orientation
Cost increase
Market complexitychallenges
advanced approach
Growth of multi-format retail chains
CATEGORYMANAGEMENT
• Optimized & well-balanced assortment• Clear logical layout
• Merchandising simplification
• Simplification of shopping process
• Customer’s loyalty increase
• Growth of Premium Spirits category
• Category layout in line with Shopper Insight
• Customers education of the right consumption
• Creation of shopping best practice
at the marketfor
Customer-centricCategory management
for
Premium Spirits Development Strategy
Gin 0,17%
Tequila
0,7%
Vermouth 7,43%
Rum 0,97%
SPW 4,69%
Wine 63,18%
Whisky 5,52%
Cognac 0,72%
Brandy 0,57%
Vodka 14,96%
Premium Spirits
21,7%
Liqueurs 1,08%
Premium Spirits Structure*
Source: * Customs, ** Real Sales Out Report, Moscow
Category Strategy
Premium Spirits are key categories in Retailer’s range:
Sales Value building
Traffic building
Transaction building
Image Enhancing
Category tactics
Optimal assortment matrix building on high loyalty & market leading items
Price gap analysis
Drive multi-purchase via attractive layout and consultancy
Category presentation improvement based on shopper behavior pattern
Innovative approach in decoration
Customers education
Sales Value, RUR
2006 2007 2008 2009
Gin Rum SPW Tequila Vermouth
+30%
+31%
+11%
Methodology, Tactics & Actions
AnalysisAnalysis LayoutLayout
ImplementationImplementation NavigationNavigation
Category determination
Category analysis
Shopper research
Outlet types grouping Range optimization
Category segmentation
Regional differences adaptation
Planogram
Decoration
Implementation Trainings for Floor Managers in outlets
KPIs
Shopper Insight
Methods Qualitative research
accompanied shopping
shopping in glasses with embedded camera
focus groups
on-line research
Quantitative research interview in POS and in checkout aisle
shoppers’ behavior observation
Findings
Exceeding brand loyalty
Gift packs are good brand identificators
Customers read back labels during shopping
Shoppers are not experts in the category.
Difficult to make choice in mixed categories layout
Customers need clear logical layout
Department does not look premium enough
Assortment optimization
Category Management in Rums, Tequila, Sparkling wines, Vermouth
• Due to recessionary market trends, shoppers switch to cheaper brands – it is necessary to implement clear
price segmentation
• Clear segmentation by shopper decision tree
• Seasonal shelf share correction for category segments with seasonal sales movement
• Delisting of stagnated SKUs.
Market trend analysis
Competitive trends analysis
Assortment analysis
Layout optimization
Dry Sparkling wines Sweet Sparkling wines
Imported Sparkling wines
CISItaly Chile
Argentina
French Champagne
ItalyGermany
Hungary
French Sparkling
wine
Spain
SPW variety
Dry
France
Germany
Brut
Champagne
Sweet
Spain
Austria
ItalyProsecco
Brut
Brut
Cava
Chile
ItalyOthers
Asti
Objectives
Build assortment based on target customers’
preferences
Deliver shelf space in line with Category sales,
Market trends and Shopper decision tree.
Rum, Gin, Tequila categories development
Джины
ТекилаРомы
Rum category decoration
Category navigation objectives• Category visibility improvement• Product availability• Attractiveness
• Drive multi-purchase • Shopping in the Category simplification• Customers education
Installation of Category cocktail correct serve
This exposition corresponds with seasonal cocktail focus (for summer period – Mojito, winter period – dark rum)
Pocket with receipts of promoted cocktail
Tequila category decoration
Installation of Category cocktail correct serve
Pocket with receipts of promoted cocktail
Vermouth category decoration
Installation of correct serve of the cocktail
Pocket with receipts of promoted cocktail
Sparkling wines category decoration
Decoration evaluation by shoppers
Installation of correct serve Receipts of cocktail
39
82
58
68
89
93
54
Base 242
%
Drawing attention
Positive evaluation
Customer education
Motivation to try cocktail
Decorators help to identify the Category
Purchase stimulation
Drinking culture understanding
Source: Results of Shopper Decoration Evaluation, 2010, May
Sales Value, RUR, ’09 vs. ‘08
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecJan`10Feb̀ 10
Non-test outlets Test outlets
Planogram implementation
Trend (Non-test outlets) Trend (Test outlets)
Project efficiencyLight spirits
Source: Real Scan data-20%
-10%
0%
10%
20%
Nov`09/08 Dec`09/08 Jan`10/09 Feb`10/09
Decoration implementation
Test
out
lets
– 1
0, 1
1, 1
3
Non
test
out
lets
23,
12
Test
out
let –
10,
Non
-tes
t out
let -
11,
Average monthly Category sales
exceed in test outlets +7%
vs. non-test outlets -3%
+10%
Average monthly Category sales
exceed in test outlets +11%
vs. non-test outlets -9%
+20%
Project efficiencyStrong spirits
Source: Real Scan data-10%
10%
30%
50%
70%
Nov`09/08 Dec`09/08 Jan`10/09 Feb`10/09
Decoration implementation
Test
out
lets
– 1
0, 1
1, 1
3
Non
test
out
lets
23,
12
Test
out
let –
10,
Non
-tes
t out
let -
11,
Sales Value, RUR, ’09 vs. ‘08
-70%
-40%
-10%
20%
50%
80%
110%
140%
170%
200%
230%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecJan`10Feb̀ 10
Non-test outlets Test outlets
Planogram implementation
Trend (Non-test outlets) Trend (Test outlets)
Average monthly Category sales
exceed in test outlets +32%
vs. non-test outlets +18%
+14%
Average monthly Category sales
exceed in test outlets +31%
vs. non-test outlets +16%
+15%
Project originality
• Tailor made approach to Customers’ preferences of particular retail chain
• Clear and convenience shelf navigation implemented to simplify shopping
• Customers education of the right consumption – Cocktails receipts, Installation of correct
cocktails serve
• Creation of shopping best practice to attract customers to Alcohol Department
• Inspiration of Retailer perception like the benchmark of the best offer of Premium Spirits
• Premium decoration materials to make premium look of the Category
Thank you!
Bacardi Rus LLC
Tatiana Karaseva
Category Manager
Real Hypermarket
Ekaterina Kudryashova
Head of Space Management Department