Business and Category Management Concepts

Flashcards based on lecture notes covering business strategy, category management roles, retail tracking metrics, and market terminology.

Business strategy

A set of guiding principles that, when communicated and adopted in the organization, generates a desired pattern of decision making.

Four category roles

1. Destination, 2. Routine, 3. Occasional/seasonal, 4. Convenience.

Destination (category role)

To be the primary category provider and help define the retailer as the store of choice by delivering consistent, superior target consumer value.

Routine (category role)

To be one of the preferred category providers and help develop the retailer as the store of choice by delivering consistent, competitive target consumer value.

Scanning data

A scanning based market information tracking and analysis tool that reports market share and volume along with casual data which explains trends and identifies opportunities.

UPC Code (first 5 digits)

The first 5 digits of the universal product code identify the manufacturer.

Dollar sales

Derived from multiplying the number of units times the average price per unit.

Decomposing Sales

Estimated sales volume in the presence of a retail driven promotion.

Household purchasing (Panel) information

Data that helps answer manufacturer questions regarding customer demographics, purchase amount, buying location/frequency, brand loyalty, and marketing response, as well as retailer questions regarding shopper types (core vs. occasional).

Category management process

A Retailer - Wholesaler - Manufacturer process of managing categories as Strategic Business Units, producing enhanced business results by focusing on delivering Consumer Value.

Wholesaler

A merchant or middleman who sells.

Retailer

Any individual who operates their business.

Consumer

The buyer.

Megatrend

A long term shift in behavior or attitude with global impact across multiple Industries.