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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.
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