What Are the Different Types of Commodity Trading Strategies?
The category strategy is formulated by the enterprise for the role and goals of category management. For different category roles and goals, different category strategies are used. For example, for the target category, it is necessary to use strategies such as strengthening the credibility and increasing the transaction volume, so as to achieve the level of contribution of the category.
Category strategy
Right!
The category strategy is formulated by the enterprise for the role and goals of category management. For different category roles and goals, different category strategies are used. For example, for the target category, it is necessary to use strategies such as strengthening the credibility and increasing the transaction volume, so as to achieve the level of contribution of the category.
- Chinese name
- Category strategy
- Classification
- Increase traffic
- Methods and steps
- Reduce commodity costs through supply chain optimization
- case analysis
- Procter & Gamble and Category Management in Chongqing New Century
Category strategy is divided into marketing strategy and product supply strategy. [1]
Before developing a category strategy, the first thing we need to understand is what we want to achieve. The three key elements are: [1]
Case 1: Cooperation between P & G and Chongqing New Century in category management
Background: Chongqing New Century is the largest retailer in Chongqing, with department stores, hypermarkets, supermarkets, and small supermarkets. In 2006, it was found that customer loyalty has declined for two consecutive years, and the customer unit price of customers is generally lower than competitors. Facing such business opportunities, Chongqing New Century and Procter & Gamble carried out category management cooperation in the washing category to improve the shopping experience of customers and bring new business growth.
Main strategies and methods: shopper research, cross-frequency analysis, category management tactics, effective product selection and effective shelf display, in-store design.
First, define the category.
For example, the definition of a shampoo category is used to meet consumer hair care needs, including cleaning, care, and styling needs. The sub-categories included are: (1) shampoo; (2) hair care products; (3) styling products; (4) hair dye products; (5) hair accessories.
Second, category roles: Consumer-oriented category role classification methods. Conduct cross-category analysis based on the importance of categories to consumers, retailers, markets, and competitors, and finally identify hair care categories and beauty skin care categories as target categories, female care categories, male care categories, oral care categories, personal cleaning care Categories are regular categories, and then shelf resources are redefined based on their category roles and sales and profit contributions, and the layout of each category is redefined based on category correlation studies.
Category name | Category role |
Hair care products | Target |
Female Care Products | Conventional |
Day Care Products | Conventional |
Personal care products | Conventional |
Men's Care Products | Conventional |
Beauty skin care products | Target |
Third, category assessment, analysis of market growth trends of each category, proportion and market trend of each sub-category, market performance of major brands, shopper analysis, and sales performance of retailers by category, proportion and sub-category performance , The performance of each brand.
Fourth, the category score table. A category score indicates the following.
| | Currently | the first year | the second year | The third year |
| | Happening | actual | aims | actual | aims | actual | aims |
Sales | Buyer visits | | | | | | | |
% Shopping basket has this category | | | | | | | |
Average amount per transaction | | | | | | | |
Finance | Sales | | | | | | | |
Average gross profit margin | | | | | | | |
Actual profit | | | | | | | |
market | Market share (sales) | | | | | | | |
| | | | | | | |
Fifth, formulate strategies for each category.
For example, the shampoo category strategy: develop high-end series of hair care products; increase the joint sales of hair care products; develop large brands.
Sixth, category tactics. Develop effective product selection and shelf display programs.
Then implement effective selection and shelf display, and carry out in-store design, the results obtained are as follows:
1. Increase sales across the entire wash category
Category name | Sales growth compared to the previous 3 months |
Hair category | 160% |
Personal care products | 142% |
Oral care products | 160% |
Female Care Products | 140% |
2. Customers buy more high-end products
Category name | Ratio of high-end to low-end | Increase in customer price |
prior to | after that |
Hair care products | 1.5: 1 | 2.3: 1 | +3 yuan |
Oral care products | O. 5: l | 0.66: l | +1 yuan |
Personal cleaning and care products | 1.3: 1 | 1.7: 1 | +2 yuan |
3 Increase joint sales and category gross margins
Subcategory | growth rate |
Shampoo products | 148% |
Hair care products | 201% |
