Category Management Insight

Background:
In support of Cannondale's consultants, the Analytics Group conducted a number of analyses to assess the position and opportunities for a Household Goods Manufacturer in their role as a category leader. The approach targeted the most influential variables within a category manager's span of control: Adjacencies, Aisle Flow, Planogram Configuration, and SKU Assortment in an effort to simplify the consumer shopping experience.

Analysis:
An exhaustive amount of data was collected on the national, account, and store levels. Store footprints, aisle configurations, planograms, and retail sales data were paired with scan data. Cannondale's proprietary profitability analysis model, GinsuABC™, processed account-specific SKU level data into fundamental profitability measures, as well as more complex treatments such as activity based costing. The profitability analysis, combined with the product relationship leanings, consumer purchase dynamics, market structure analysis, and custom consumer research were used as guiding principles for section configuration.

Supporting Information:
Please see the Category Management Case Study in the Consulting section for further explanation of how Cannondale helped this manufacturer utilize category management principles.