As shown above, a category review allows you to analyse the performance of your category and gives you ideas on how to improve. Usually completed a few times a year, it’s the ideal opportunity for you if you’re a supplier intent on growing the category that stocks your products.
With it, you can provide robust suggestions backed by data. What retailer would say no to that? These suggested changes can be anything from updates to a product range to shelf space allocation revisions, new promotion strategies and more.
The category review is an essential component for you regardless of if you are a retailer or supplier. You'll both benefit. You only need to look at its definition to confirm that:
A category review is the ongoing strategic and analytics process of reviewing a category to improve the sales and profitability of the whole product grouping.
That is a win for everyone, retailer and supplier included.
As a supplier, preparing for your review is an opportunity to work closely with your retail client to strategise and introduce new brands and products. It's also an opportunity for you to set up future goals and expectations for the category.
In setting these goals, you can work toward a future where all the products within the category perform as expected or better. When that happens, you can rest assured that the category's overall health (and longevity) is guaranteed.
As a retailer, when your suppliers spend more time and energy preparing a category review that genuinely seeks to improve your overall efficiency and the performance of a category, you can extract more value from them.
There is also the point that as soon as you both benefit, it enhances your retailer-supplier partnership. We also like to refer to it as a relationship because that is what it should be - a two-way relationship that considers everyone's objectives and goals.
From DotActiv's perspective, our category planners prepare category reviews based on thorough data analysis. The goal is, as stated above, to use the gathered data to spot opportunities to improve the performance of a given category.
It's the same if you're a supplier looking to prepare a review. But remember this: a category review must benefit the entire category as opposed to only your products.
Ultimately, you'll present your findings to your retail client. So how can you prepare for your next review?
You can begin by gathering line-item sales data in one place so you can start your analysis. For an efficient review presentation, you need to know everything there is to know about how the category is performing.
It's also worth comparing your findings to any external market data at your disposal. Doing so will enable you to provide your retail client with insight that isn't only about their category but also how other retailers fare in comparison.
It also means you can provide a holistic view, furthering your authority and displaying why what you're presenting makes good business sense for everyone involved.
Another data type is related to your shopper. By including shopper marketing data - insights into shopping behaviour and consumer decisions, you can offer further insight.
This in-depth understanding of shopper behaviours and attitudes will go a long way in adding value to the future direction of the category.
How you convey your data needs to be direct, so start by writing down a handful of questions your data visualisations should answer.
Then craft your intentions around finding clear answers to the questions. Below are a few examples of questions to get you started:
Once you have placed your category data into the most appropriate data visualisations that help you answer your questions, it's a matter of preparing your final presentation.
Your category review presentation is your opportunity to convey your findings, recommendations, and the direction the retailer should take in the short- and long-term if they continue with category management.
During this presentation, your goal is to act as a trusted advisor and not a pushy salesperson. In reality, you should be a trusted advisor throughout your relationship and not only while presenting your findings.
If you’re looking for a few powerful points for your presentation, here are a few:
An added tip, which isn't absolutely necessary, is to print and bind your presentation and supporting information. Instead, you could email a digital copy of your presentation along with any pertinent notes that unpack everything.
Conclusion
Being prepared for your category review is worth the effort. There isn’t even a valid argument for why not. When you are prepared, you can prove to your retail clients why you're a valuable partner that's worth keeping around. More importantly, you can both benefit.
While you ensure you get the best shelf placement for your products, you help grow the category, which can lead to increased sales and profit for your retail client. Who wouldn't want that?
Do you need help preparing for your next category review? Or maybe you're looking for best-in-class category management software that makes setting up presentations easy. Why not book a complimentary custom exploratory meeting with a DotActiv expert here to find out more or browse our various software editions and services our online store here.
*This article was updated on 13 October 2022.