Category management is in the crosshairs of the retail food industry.
A new study by the Food Marketing Institute (FMI), Deloitte Consulting LLC, and Winston Weber Associates claims the traditional process is stagnant. The good news is that a roadmap to a more insightful shopper-centric way of doing business is accessible in today’s market. The collaborative business planning study suggests that the biggest shortcomings of category management relate to being too product-focused and too narrow in approach.
“Similar to the ambitions of the 1995 Efficient Consumer Response initiative, our analysis in Shopper-Centric Retailing recommends a culture change that challenges our comfort levels and bucks current trends in category management,” said Mark Baum, FMI’s chief collaboration officer. “We are calling for an industry transformation to adapt to today’s new consumer.”
The study found that 100 percent of retail and consumer packaged goods respondents believed some degree of change is required; a quarter of respondents believed that nothing less than an entire redefinition and transformation is necessary. Conversely, 85 percent of retailers have made either “no change” or “moderate change” to the initially-prescribed eight-step category management process.
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