1 / 17

Increasing diversification of the actual standard process for category management

Category Management Training Program for ECR D-A-CH Draft proposal for discussion of European rollout Brussels, October 3, 2002. We realized that the lack of CM implementation in D-A-CH is also due to the lack of cross-company training based on ECR standards.

gefjun
Download Presentation

Increasing diversification of the actual standard process for category management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Category Management TrainingProgram for ECR D-A-CH Draft proposal for discussionof European rolloutBrussels, October 3, 2002 MUC-90002-274-29-02-E.ppt

  2. We realized that the lack of CM implementation in D-A-CH is also due to the lack of cross-company training based on ECR standards • Increasing diversification of the actual standard process for category management CM training program for ECR D-A-CH – Why we consider it useful • Limited data availability and harmonization and lack of system support • Gaps in the know-how and do-how of process participants • Insufficient willingness to cooperate due to the traditional culture of conflict     Approach to a CM training program for ECR D-A-CH MUC-90002-274-29-02-E.ppt Source: Roland Berger

  3. BACKUP We realized that the lack of CM implementation in D-A-CH is also due to the lack of cross-company training based on ECR standards • The application of category management (principles) in day-to-day business has been proven to contribute to improved business results for retailers, suppliers, and added value for consumers • While category management is fully embedded in day-to-day business in the UK, the Netherlands, and Scandinavia, the three German-speaking countries lag behind considerably • The reasons for this are manifold • Diversification of the actual standard process for category management • Limited data availability and harmonization and lack of system support • Gaps in the know-how and do-how of process participants • Insufficient willingness to cooperate due to the traditional culture of conflict CM training program for ECR D-A-CH – Why we consider it useful (1) MUC-90002-274-29-02-E.ppt Source: Roland Berger

  4. BACKUP We realized that the lack of CM implementation in D-A-CH is also due to the lack of cross-company training based on ECR standards • We have come a long way in solving the process- and system-related problems • In the course of day-to-day category management, companies have reverted to the only sensible standard process • On the system side, there are now a number of acceptable solutions for day-to-day category management support • The planned training program to take a person to the position of category manager for ECR D-A-CH represents a major contribution to eliminating the lingering reluctance to jointly tap into the profit potential of category management • Deficits in technical know-how are compensated for by the ambitious but pragmatic program of participant training in the first instance; participants then spread the knowledge throughout their organization • Mutual understanding and cooperation is developed implicitly through joint training sessions involving both retailers and suppliers CM training program for ECR D-A-CH – Why we consider it useful (2) MUC-90002-274-29-02-E.ppt Source: Roland Berger

  5. We therefore decided to introduce a quality but affordable training program that would contribute to the penetration of CM standards CM training program for ECR D-A-CH – How we want to position it 1 • Based on ECR standards – The training program is conducted within the framework of the 8-step category management process using the contents of day-to-day category management 2 • Affordable – The training program is priced at a rate that will facilitate the participation of employees from smaller companies and the broad-scale participation of employees from large companies and will also allow it to become a standard training element in the course of their career 3 • Premium quality – The training program distinguishes itself from any other category management seminar, etc. by its solid conceptual framework and immediate transferability of the training concepts MUC-90002-274-29-02-E.ppt Source: ECR D-A-CH

  6. First of all, we asked a large number of companies about their requirements for a CM training program conducted by ECR D-A-CH CM training program for ECR D-A-CH – Key requirements • Other • Practical relevance/case studies • Strategic importance for retailers, suppliers, and brands • Process and data interpretation • Training of analysis and implementation • Cooperation between • industry & retail • Process orientation • General knowledge of the ECR/CM process • Day-to-day CM controlling • Measurement of success Source: Survey of ECR D-A-CH conducted among 575 companies with 96 responding MUC-90002-274-29-02-E.ppt

  7. We then packaged the companies' requirements along the 8-step category management process as a first conceptual draft CM training program for ECR D-A-CH – Preliminary concept and content 1 A • Category definition • CM base station • Lecture: The basis of ECR and CM • Groups formation for trials, each with 2 retailers’ and suppliers’ employees • Theory: CM process steps 1-4 • Practice: Introduction to Xcel sheets for CM • Exam: Explanation of exam methodology 2 • Category role 1 week 3 • Category assessment • Category review • Category performance targets 4 5 • Category strategies 6 • Category tactics 8 • Category plan implementation 7 MUC-90002-274-29-02-E.ppt Source: Roland Berger

  8. 2 months B • CM base camp I • Practice: Presentation of work results1-4 • Theory: CM process steps 5-6 • Exam: Issue of dissertation topics 2 days We then packaged the companies' requirements along the 8-step category management process as a first conceptual draft CM training program for ECR D-A-CH – Preliminary concept and content 1 A • Category definition • CM base station 2 • Category role 3 • Category assessment • Category review • Category performance targets 4 5 • Category strategies 6 • Category tactics 8 • Category plan implementation 7 MUC-90002-274-29-02-E.ppt Source: Roland Berger

  9. 1 month C • CM base camp II • Practice: Presentation of work results 5-6 • Theory: CM process steps 7-8 • Exam: Presentation of exam tasksand exercises 2 days We then packaged the companies' requirements along the 8-step category management process as a first conceptual draft CM training program for ECR D-A-CH – Preliminary concept and content 1 A • Category definition • CM base station 2 B • Category role • CM base camp I 3 • Category assessment • Category review • Category performance targets 4 5 • Category strategies 6 • Category tactics 8 • Category plan implementation 7 MUC-90002-274-29-02-E.ppt Source: Roland Berger

  10. We then packaged the companies' requirements along the 8-step category management process as a first conceptual draft CM training program for ECR D-A-CH – Preliminary concept and content 1 A • Category definition • CM base station 2 B • Category role • CM base camp I 3 • Category assessment C • CM base camp II • Category review 1 month • Category performance targets 4 D • CM summit meeting • Practice: Presentation of work results 7-8 • Exam: Brief presentation of dissertations • Theory: CM organization and system requirements • Lecture: Practical experience with CM 5 • Category strategies 3 days 6 • Category tactics 8 • Category plan implementation 7 • Written and oral exam MUC-90002-274-29-02-E.ppt Source: Roland Berger

  11. BACKUP The comprehensive training ends with a written exam, an oral exam and a practice-related "dissertation" CM training program for ECR D-A-CH – Key elements (2) • The final exam to become a certified category manager for ECR D-A-CH comprises two components • A written exam at the end of the training program consisting of 20-30 questions drawn from a pool of 60-100 questions and standard answers which participants learn over the course of the program • A detailed oral exam lasting around 15 minutes consisting of 2-3 questions from the pool of questions • A practice-related "dissertation", e.g. on one of the CM process stages; the paper is submitted, presented verbally, and graded at the end of the program • The cost/time requirement per participant is likely to be as follows: • A financial investment of EUR 6,400, including exam fees, per participant • An investment of 12 days for the training and group work and around 20 further days for the necessary "homework" – all of this is spread over six months MUC-90002-274-29-02-E.ppt Source: Roland Berger

  12. I • Identify needs • Feasibility and financing • Identify and select partners • Decision paper on the CM training program for ECR D-A-CH Feasibility analysis • Carry out pilot training • Implement a train-the-trainer scheme • Fine-tune the concept • Tested CM training program:ECR D-A-CH 2.0 III Setup phase IV • Hand over to partner for ongoing implementation • Quality and content assurance by ECR D-A-CH Ongoing training In order to get our concept off the ground we developed a project approach with clearly defined phases and deliverables CM training program for ECR D-A-CH – Overview of project approach Phases Modules Results • Conceptualize content with training partner • Conceptualize technology with tech. partner • Conceptualize the organization • Concept for CM training program:ECR D-A-CH 1.0 II Concep-tualization phase MUC-90002-274-29-02-E.ppt Source: Roland Berger

  13. We contacted 575 manufacturers, retailers, and service providers from the consumer goods industry to assess the market potential CM training program for ECR D-A-CH – Scope of survey of market potential • Germany • Austria • Switzerland • Total: 341 • Total: 140 • Total: 94 • Service industry • Service industry • Retail 4% • Service industry 7% • Industry • Retail • Industry 89% • Retail • Industry • Responses by August 20, 2002 • Responses by August 20, 2002 • Responses by August 20, 2002 • Retail: 60% • Industry: 15% • Service industry: 20% • Retail: 9% • Industry: 10% • Service industry: 3% • Retail: 48% • Industry: 56% • Service industry: 20% MUC-90002-274-29-02-E.ppt Source: Roland Berger, ECR D-A-CH

  14. About 75% of potential participants are from larger companies – however, smaller companies are interested, too CM training program for ECR D-A-CH – Market potential by company size • Small companies(< 100 empl.) • Medium-sized companies (100-500 empl.) • Large companies (> 500 empl.) • Responses: 19 • Responses: 23 • Responses: 54 • Interested • Interested • Interested 37% 43% 48% 52% 63% 57% • Not interested • Not interested • Not interested • Realistic potential participant numbers per year • 22 • 19 • 120 MUC-90002-274-29-02-E.ppt Source: Roland Berger, ECR D-A-CH

  15. Even the price of the training, at EUR 6,000, did not raise any unexpected objections CM training program for ECR D-A-CH – Response to pricing at approx. EUR 6,000 • Too expensive • Right price • N/A MUC-90002-274-29-02-E.ppt Source: Roland Berger, ECR D-A-CH

  16. The CM training program will not require any up-front investment but will create a steady flow of licensing fees for ECR D-A-CH CM training program for ECR D-A-CH – The business case • We calculated the total cost of developing the CM training program for ECR D-A-CH, including pilot training, to be EUR 350,000 • Cost of development will be covered by • EUR 150,000 licensing fees from training partners who will conduct the training on an ongoing basis in D (EUR 100,000) and CH (EUR 50,000) starting in October 2003 • EUR 150,000 net contribution from participant fees for the two pilot training sessions conducted from March to August 2003 • EUR 50,000 - EUR 100,000 from program sponsors, mainly by providers of CM support software • Therefore, putting the training program into action does not require any up-front investment by ECR D-A-CH. From October 2003 onward, ECR D-A-CH will earn a 10% licensing fee on the training fee of each participant Source: ECR D-A-CH MUC-90002-274-29-02-E.ppt

  17. There are several reasons why a European rollout of the training program will be beneficial for ECR Europe CM training program ECR Europe – Why we think a rollout across Europe makes sense 1 • We believe the training needs in category management detected in D-A-CH also exist in other European countries  2 • We believe that conducting the training in line with agreed European CM standards is essential, as retailers and manufacturers are increasingly trying to operate on a European scale  3 • We believe that successfully putting into action a European CM training program will boost the reputation and leverage of the ECR initiatives as a whole  4 • We believe that the business model used for ECR D-A-CH can be easily rolled out across Europe if the experience gained so far is properly used  Source: ECR D-A-CH MUC-90002-274-29-02-E.ppt

More Related