Cosnumer Centric Category Management Supplimental Tools Courtesy ESM D

Consumer Centric Category Management : 

Consumer Centric Category Management Kean University Professor Domenick Celentano Retail Seminar September 15, 2010 Tools Used Today

Introduction : 

Introduction Domenick Celentano Held key executive positions in Celentano Bros, #2 Italian Frozen Food in the North East Professor Entrepreneurial Studies & Family Business Management at Fairleigh Dickinson University Retail Marketing at Kean University http://kean.domenickcelentano.com/home dcelenta@kean.edu The FoodPreneur Food Consultancy Food Entrepreneurship Professional Training

Today’s Category Management Tools : 

Today’s Category Management Tools This is an example taken from The FoodPreneur series highlighting tools used in today's Food, Drug and Mass Merchant Channels Nielsen IRI Spectra DemandTech

Strategic Partners : 

Strategic Partners Eastern Sales and Marketing. 2 Van Riper Rd, Montvale, NJ 201 307 9100 info@esm-usa.com http://www.esm-web.com/contactus.htm Many thanks to Mr. Tony Scuderi, President of Eastern Sales and Marketing for providing valuable information relating to the tools used today for Consumer Packaged Goods Brands. His generous support of academics has made this presentation possible.

Slide 5: 

Italian Sauce Brands– Total U.S. and Northeast Source: IRI; 52 Weeks Ending Sep 9, 2007 The Top 30 Italian Sauce Items Alone Contribute 38% of the Total US Category Sales In Total U.S. Grocery, the Italian Sauce Category Contains 2,009 Items

Slide 6: 

Top 30 Italian Sauce Items – Total U.S. Food Source: IRI; 52 Weeks Ending Sep 9, 2007 The Top 30 Italian Sauce Items Alone Contribute 38% of the Total US Category Sales In Total U.S. Grocery, the Italian Sauce Category Contains 2,009 Items

Slide 7: 

Top 30 Italian Sauce Items – Northeast U.S. Food Source: IRI; 52 Weeks Ending Sep 9, 2007 The Top 30 Italian Sauce Items Alone Contribute 35% of Northeast US Category Sales In Northeast U.S. Grocery, the Italian Sauce Category Contains 1,480 Items

Slide 8: 

Italian Sauce Category – Item Mix Optimization Source: IRI; 52 Weeks Ending Sep 9, 2007 SKU Count % Category $ Coverage Total U.S. Food The Italian Sauce Category is Very Highly Fragmented, with 90% of Category Sales Generated by Only 12% of the SKUs, and the Top 10 Items Alone Generating Almost 20% of Category Dollars Continually Assessing and Optimizing Assortment Will Free Up Valuable Space to Re-Allocate to Top Sellers and New Offerings;

Slide 9: 

Predictably, Spaghetti Sauce Demand is Strong in the Northeast US, and Strongest on the Seaboard, From Portland ME through Philadelphia PA. The Strongest Concentration of Italian-Americans Live in This Region Lowest Demand Indices Found Through the Region Defined as “East South Central”, Encompassing the “Ark-La-Tex” Region and Oklahoma. Spectra Category Demand Index by U.S. Demographic Marketing Area (DMA) Italian Sauces: Demographics Source: Spectra Marketing; EnLighten Version 07B

Slide 10: 

From the Above Identified Demographics, A Far Clearer Picture Can be Drawn of the Core Italian Sauces Consumer: Larger Households (Esp. 2+ Children), Higher Household Income (Esp. $75,000/yr.+) Residence in Northeast U.S. (Esp. New England and Mid-Atlantic Regions) Spectra’s Consumer Attribute Model Defines Best Demographic Matches for Category Italian Sauces: Consumer Dynamics Highlighted Cells Indicate Strongest Correlation Between Population and Italian Sauce Category Most Important Demographics Source: Spectra Marketing; EnLighten Version 07B

Slide 11: 

Northeast US “Retailer X” Example – 20 Foot Section Italian Sauces: Sample Planogram Ragu - National Bestseller at Head of Category Flow; Vertical “Brand Block” # 2 Category Brand in “Anchor Position” at End of Category Flow Private Label (Store Brand) Positioned Immediately Adjacent #1 Brand for Max. Traffic Premium Brands (Victoria) Merchandised on Top Shelf for Asset Control; Reduced Capacity Minimizes “Shrink Risk” Regional Players Shelved Centrally and at “Eye Level” for Maximum Visibility There’s Much More Than “Meets The Eye” To Effective Shelving and Merchandising Positioning of Brands and Product Types Are Carefully Strategized to Maximize Sales, Profits, Item Capacity and Inventory Control

Slide 12: 

Italian Sauce Category – Seasonality Source: IRI; 52 Weeks Ending Sep 9, 2007 Weekly Base Unit Volume – Sept. 2006 – Sept. 2007 Metro NY – Retailer “X” Example Peak Category Seasonal Periods December thru Mid-April, with Highest Weekly Volume Occurring on Christmas Week and again in Mid-January; Summer Months are Softest for Category Christmas Week

Slide 13: 

Italian Sauce: Promotional Analysis 52 Week Promotional Summary Promotional Spending Heavily Focused on Key Seasonal Period (Winter/Spring) Two Top Volume Weeks The Result of the Following Combination of Aggressive, High-Depth Feature Programming: Note strategic use of deep discounting on both National and Regional brands, across both Price and Premium segments Features Above Also Coincide With Retailer X’s cornerstone annual “canned goods” event – a heritage event pioneered and made famous by Retailer X Key Observations: Source: IRI; 52 Weeks Ending Sep 9, 2007 Metro NY – Retailer “X” Example

Spectra EnLighten DataPsychographics : 

Spectra EnLighten DataPsychographics

Spectra EnLighten DataPsychographics : 

Spectra EnLighten DataPsychographics

Slide 16: 

Please feel free to contact me with any questions Professor Domenick Celentano http://kean.domenickcelentano.com/home dcelenta@kean.edu dom@domenickcelentano.com 908-866-1366

Consumer Centric Category Management : 

Consumer Centric Category Management Kean University Professor Domenick Celentano Retail Seminar September 15, 2010 Thank You For Attending