WWA’s new beyond category management model, Shopper Centric RetailingSM has been confidentially presented to a few major retailers in the US. The reaction has been overwhelming…
- Retailer A:
“I want the recommendation for a full implementation plan on my desk as soon as possible.”
- Retailer B:
“You are spot-on in your perspective on the industry and the actions required to change.”
- Retailer C:
“We have been thinking about this. You certainly have done a good job of bringing it all together.”
- Retailer D:
“You are in a powerful position…our thinking is incredibly aligned.”
Shopper Centric RetailingSM is defined as… the ability to enhance the shopping experience through the shopper centered alignment of strategies, tactics and execution; business processes; merchandising competencies; and performance measures across internal functions
and between trading partners at the “touch point” of the shopper…the store.
Details are confidential…
we will share more
information on an individual basis.
This new model overcomes the limitations of category management…
- Puts a much sharper focus on the customer and the shopping experience.
- Bridges functional and departmental silos
- Restores the emphasis on being good Merchants
- Frees up time at the “Merchant’s” desk to focus on driving growth
- Moves beyond sameness to a differentiation and Innovation capability
- Enhances ability to execute merchandising programs at store level
- Shifts collaboration between trading partners toward “actionable” shopper insights
A Major Paridigm Shift for Retailers
The evolution to a shopper centric business model is a major paradigm shift. It realigns Merchandising and Store Operations organizational structures and processes; it challenges traditional behaviors and performance measures; it requires investment in building Category Manager/Merchant merchandising skills; and it redefines the relationship between a retailer and its suppliers. The magnitude of change is much greater than when we introduced category management in 1991. Implementation of this revolutionary concept will differ for every retailer.
Those factors to consider when determining “how to” implement include:
- The magnitude of culture, structure, technology and business process change
- The company objectives and competitive environment may dictate the pace change
- The current skill base across the organization
- The degree of change required
- The capacity of the organization to digest change at an acceptable rate
- The readiness of the organization to accept change
- The willingness of senior management to drive change throughout the organization
Implications on Trading Partner Relationships
The collaborative process between trading partners will evolve toward merchandising solution ideation sessions and concept development; top-to-top communications and routine sales call processes will need to be completely overhauled. The evolution to a Shopper Centric RetailingSM model will have significant implications on how manufacturers will conduct business in the future. It will require a closer alignment of sales and marketing, the roles and responsiblities of customer teams,category management, customer marketing and support functions will require realignment, a shopper insights function within sales will be necessary and new skills will be required in several areas. Investment in retailer specific, actionable shopper insights will be a requirement.
What Lies Ahead
The evolution to the new model will take time…but it will happen. In 1991 we designed category management at HEB in Texas, the first practitioner of the concept… doubters said the industry would not follow. The rest is history. Since we are the architects of Shopper Centric RetailingSM , we know exactly what retailers must do to prepare for the future. Response has been overwhelmingly positive to date. Call today to learn more.
