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Insight Information in Category Management
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Insight Information in Category Management Co-operation
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• Targets:– To illustrate how information is used in retailer-supplier partnership to
enhance the confectionary category performance and growth.– To give some practical examples of the key knowledge tools and practices
• Agenda:– Introductions– Short company presentations– Partnership– From data to information tools
• Segmentation, clusters, solutions
– Examples of day to day category management• Planning of assortments – case launching novelty Fazer Nordic Gourmet
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Kesko Group, year 2009
• The K-Group’s sales were €12.6 billion• Sales in Finland €10.5 billion• K-food stores’ sales €5.7 billion
– Hypermarket (K-citymarket), supermarket (K-supermarket, K-market) and proximity stores (K-extra)
• The number of the K-Group personnel wasc. 45,000, of whom 22,200 were Kesko employees
Building and home improvement trade
Car and machinery trade
Food trade
Home and speciality goods trade
44 % of net sales27 % of net sales
11 % of net sales18 % of net sales
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Finland5.3m
Sweden9m
Estonia 1.4m
Latvia 2.3m
Lithuania 3.4m
St. Petersburg area 5m
Norway 4.5m
Moscowarea 15m
Belarus9.8m
Kesko has 2,000 stores engaged in chain operations in eight countries
Total about 56m consumers
• Finland: all divisions• Sweden: building and
home improvement trade• Norway: building and
home improvement trade• Baltics: building and
home improvement, agricultural and machinery trade, furniture trade and distance sales
• Russia: building and home improvement trade, machinery trade
• Belarus: building and home improvement trade
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Oy Karl Fazer Ab
Fazer Food Services
• The leading food service company in the Nordic and the Baltic countries
• Almost 1400 restaurants in the Nordic countries, Estonia, Latvia and Russia
• 360 000 meals daily
• Turnover 536 M€ (2009)
• Number of personnel 7 500
Fazer Group
Fazer Group:Turnover 1 441 M€ Personnel 17 000
Fazer Bakeries & Confectionery
• Finland's leading bakery and confectionery company, one of the leading companies in the Baltic Sea region and Russia.
• 21 bakeries in Finland, Sweden, Estonia, Latvia, Lithuania and Russia. Market leader in St. Petersburg.
• The confectionery factories are located in Finland: Vantaa, Lappeenranta and Karkkila
• Turnover 905 M€ (2009)
• Number of personnel ca 9 200
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Strong Market Positions Across the Region 2009
FinlandFF # 1. (53 %)FB # 1. (39 %)FC # 1 (35%)
SwedenFF # 2. (28 %)FB # 2. (28 %)FC # 4. (8%)
DenmarkFF # 3. (15 %)
NorwayFF # 4. (10 %)
The Nordic countriesFazer Food Services: 1. (28 %)Fazer Bakeries: 1 (18%) (fresh bread)Fazer Confectionery: 2 (15%)
BalticsFF # 1. FB # 2. (16%)FC # 3. (>10%)
Russia / FBSt Pete # 1. (44 %)Moscow # 5. (~7%)
Fazer Group
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Over 50 FMCG retail and supplier customers
Our FMCG supplier customers’ combined market share is over 70% in Finland.
Comprehensive management system from strategic to tactical level
• Advanced customer segmentation
• Planning tools for category management processes, supplier collaboration and marketing
• Corporate performance management, analysis and reporting systems
• Product information maintenance
• Consulting in customer insight
Customer and trend insight for competitive advantage
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Partnership
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Partnership between Kesko Food and Fazer
• Why to do it?
– Seeking for constant Sales and Profit growth– Utilize and understand consumer and shopper insights– To improve target customer’s service and price image of the category– To do it with less costs and more efficient way– Common KPI’s
– Need to understand different levels of co-operation– Fazer Confectionary– Kesko Food Ltd – K-retailers (multi format independent entrepreneurs)
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Fazer has many interfaces towards Kesko Food
Optimal assortment and delivery accuracy towards K-food stores
Best shelf availability and quality to consumers
Demand analysis
Assortment and spacem. planning
Pro-curement
Plano- grams
Log.model
Buyingto WH
Ware- housing
StoreReplenish-ment
Delivery Instore logistics
In storePro-motion
Customerservice
Buying Satisfaction,re-buying
Several co-operation interfaces
SeasonsCampaingsNovelties
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Workshop Kesko-Fazer, March 2010
• Topics shared:– Ways Kesko Food
and K-retailers are operating
– Main activities planned for 2010
– In-store activities– Common actions
for Spring and Summer 2010
– How to gain more market share?
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Partnership as Kesko Food and Fazer do it
• What does it include?
– Shared vision and strategies– Co-processes– Co-projects– Shared tools and practices
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Rolling 12 months partnership calendar
Jan
Feb
March
April
May
June
July
Aug
Sep
Oct
Nov
Dec
Management
Marketing
Tactical
Logistical
.
Tactics for the Christmas
Tactics for the summer
Locistical plans forthe summer
.
Tactics for the autumn
Insightinformation
Locistical plans forthe autumn
.
Tactics for the start of the next year
Locistical plans forthe start of the nextyear
.
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Partnership as a process
Strategical level
-top management
Marketing level
- Chain marketing
Tactical level
- Purchasing
Operational level-Logistics, Sales
field
- projects
- Main guidelines
- Sources of differentation
- Management Scorecards
- Trade as a media
- Marketing plans
- Brand synergy
- Assortment and Space Management
- Activities
- Business scorecards
Feedback / Best Practices
- execution
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Fazer Confectionary’s KeyAccount Manager’s workbench
Kesko Food’sCustomer
segmentation
Kesko Food’s Store Clusters by
Chains
Kesko Food’s marketing
Plans by chains
KeskoFood’sPOS-data
Fazer’s DW
Mutual Scorecards
And informationtools
Kesko Food’s
DW
Market reportsAnd studies
ObservationsAnd feedbackFrom Sales
Reps
Fazer Confectionary’s Sales Reps /Kesko Food’s information tools
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The knowledge tools in use
From data to information toolsSegmentation, clusters, solutions
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Services for Kesko and suppliers
Consumer trend modelling
Product attributes (about 100)
Product information
Segmentations
Planning tools and reporting
Customer and category tracking
Performance measures
Expert services
Assortment planning and pricing
Marketing, campaigns, NPIs
Portfolio management and
R&D
Store segmentations
Customer segmentations
Product information maintenance (30 000)
products
Training
Consulting
Support
Customisation of reports
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K-food stores use a set of unique structures and equipment for assortment planning
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Food Styles – customer
segmentation
Food Styles – customer
segmentation
Store clusteringStore clustering
Analyse² Galaxy – planning tool for assortments
and pricing
Analyse² Galaxy – planning tool for assortments
and pricing
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Revised assortment structure
Cluster based assortment
Store size based assortment
Formats nationwideassortment for chains
Core assortment forK-food Store
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Consumers buy product benefitsShopping behavior reveals important trends
...this product has less salt....
...it’s good for my health... ...this brand I can trust....
describe consumers’ needs and values, and their changes
associated with product attributes:
certain attributes
certain trends
Trends ..
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Trends linked to Nordic Gourmet
Quality
New experiences and sensory
Indulgence
Strong brands
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Nordic Gourmet trends in FoodStyle groups
New experiences and sensory
Qualit
y
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Customer emphasis for Nordic Gourmet
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Nordic Gourmet trends in store clusters – FoodStyle groups are basis of store cluster assortments
New
experi
ence
s and s
enso
ry
Quality
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Assortment suggestion for K-supermarket cluster 1
• Excellent match for the target customers of the chain
• The assortment planning tools automatic suggestion ranks the products #2, #4 and #6 in their segment!
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Thank you!
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