Category management (CM) presents challenges to suppliers and retailers which are further exaggerated by efficient consumer response (ECR). The benefits of category management for supplier organisations are maximised when a purchase marketing strategy is in place for the category. Purchase marketing is essentially using the store as a marketing medium via tools such as position on shelf pricing communications and in-store promotions. The relationship between suppliers and retailers is changing steadily on a global scale: the shift towards a mutually beneficial approach to the supply and presentation of products is gaining momentum. This paper documents the various approaches to category management research and illustrates the applications via case material from both a retailer and a manufacturer perspective. The paper looks at how manufacturers are testing hypotheses generated by these studies using new virtual reality systems.
Category Management is essentially a partnership between retailers and suppliers, leading to the manufacturer driving a category through the retailer's stores rather than an individual brand. Manufacturers share information with retailers to help identify target consumers for their category, understand these consumers needs, and develop strategies to drive the category. Drawing on information from interviews with key players engaged in Category Management, this paper identifies the issues and information requirements relating to the partnership. It then goes on to illustrate two research techniques used by manufacturers to support Category Management and facilitate a profitable business partnership with the retailer.
This paper discusses the background to the Adams launch into Spain. The approach to the research and methodology are covered in some detail. The foundation for the research programme was provided by an appraisal of the Spanish retail scene conducted by the project team. The research methodology involved a series of Accompanied Shopping Trips followed by a main programme of Extended Focus Groups, during the course of which all aspects of the Adams' proposition - from name and logo through product range and store interiors- were assessed by the Spanish consumer. The paper describes how each of these elements were communicated in the groups and discusses some of the findings. The research confirmed the very real opportunity for the Adams proposition in Spain. Guided by the findings, in December, 1992 Adams opened two outlets. Both of these have been a phenomenal success. Adams now has the opportunity to fully exploit its launch by immediately following through with further store openings, a number of which are planned for this year.
As the retail trade faces up to the reality and consequences of retail saturation together with an increasingly demanding customer, so it is being forced to understand and react to that consumer. Gone are the days of pile it high, sell it cheap merchandising. The retailer today is conscious that every square foot of sales space needs to be optimised. Before space is even considered though, the first concern is get the merchandise offering right: meet, even create, the consumer need. This is true, whether the merchandise be food and groceries, electrical goods, baby clothes, or a mix of all three plus fifty or more other categories - as in the variety or department store. This paper discusses how market research can help the retailer to improve and develop his merchandise offer: to meet better the needs of shoppers in the catchment of his stores and according to the type of shopping trip they are on. This does not just concern the goods themselves but also where they are positioned in the store, presented and even promoted to consumers. The paper draws on basic research conducted into consumer shopping behaviour and decision-making in the shop and a number of case histories are used to illustrate the various techniques which can be applied.
No one would dispute that over the last two decades there has been a dramatic shift in the balance of power between manufacturer and retailer. Whilst perhaps most evident is the grocery sector this has extended to roost other areas of retailing. This paper examines the impact of this shift on our ability to measure the effectiveness of sales promotion. It reviews the stage seminar on promotions research and discusses developments since that time. A brief extract from a case study provides an illustration of the abuse of retailer power and its effect on sales promotion and lessons learnt from Research International's basic research into Point-of-Sale are presented. Finally, the paper looks to the future and discusses the route ahead for those looking to conduct research in this area.
This paper is concerned with the R.B.L.-Forecast Motorists Diary Panel and sets out to illustrate how Amoco, a relative newcomer to the U.K. petrol market, has made effective use of the panel data in its development programme. The first part of the paper discusses the various technical parameters of the panel including the panel's representation and 'pick-up' and the validity of the data. It shows how experiments over the years have led to refinements in recruitment and panel maintenance techniques which have minimised initial 'drop-out' and maximised continuity. The second part of the paper discusses ways in which Amoco has used the data as a management tool in developing and evaluating its marketing strategy. Four recent applications are discussed.