Category Strategies

What is the one important question that should be answered before developing a category strategy?

"What do I want to achieve in this category?

what do you need to know before you can effectively assign a cat strat? a. retailer's overall strats and the role assigned to the cat b. cat tactics (4p's) c. cat shelf allocatioin (# of linear feet) d. the imiplementation plan for the cat

a. retailer's overall strats and the role assigned to the cat

category ________ need to be aligned to the cat role, and set the foundations for the corresponding cat tactics. a. strategies b. managers c. scorecards d. plans e. objectives

a. strategies

if retailers assign 'cash flow' and 'profit generating' strats to cats, what else should they include in the strat? a. the profit & cash flow objectives for the cat b. a secondary strategy that relates to the consumer c. gross margin % requirements for the cat d. none of the above

b. a secondary strategy that relates to the consumer

what is the purpose of the traffic building cat strat? a. draw more ppl into the store b. all of the answers are correct c. draw more ppl down the aisle d. increase traffic in the store?

b. all of the answers are correct

transaction buildings helps to: a. increase traffic flow b. increase the size of the shopping basket c. increase loyalty d. increase hh penetration

b. increase the size of the shopping basket

what cat strat is typically assigned to a few, highly visible, frequently purchased, high ring items with competitive pricing well known to shoppers? a. traffic building b. turf protection c. transaction building d. image enhancing

b. turf protection

The category strategy needs to be established before or after developing the cat plan?

before

with what strategy should a secondary consumer-focused strategy be assigned?

cash flow & profit generating strategies

what strategy has the follow characteristics? fast turning good payment terms low stock

cash generating

What role works with all the following strategies: profit generating transaction building image enhancing

convenience

what cat role(s) match well w/ turf protecting strategy? a. routine b. destination and routine c. routine and convenience d. destination e. all cat roles

d. destination

What role works with all the following strategies: traffic building turf defending transaction building excitement creating

destination

large christmas displays and easter displays are good examples of which cat strat? excitement creating seasonal transaction building turf protection?

excitement creating

what strategy has the follow characteristics? new seasonal rapid growing fashion

excitement creating

what strategy creates a sense of 'adventure', additional items in the basket and incremental sales? It also communicates a sense of urgency or opportunity for the shopper.

excitement creation strategy (tends to be seasonal or tied to events)

true or false? category roles set up the foundations for the category tactics

false. category strategies set up the foundations for the cat tactics

what strategy has the follow characteristics? reinforce store theme healthy fresh price quality service

image enhancing

which strat do retailers use these cats to have a positive impact on shoppers thru price, service, quality and/or asst? traffic building turf protection transaction building image enhancing

image enhancing

what strategy communicates or enhances the image to shoppers through price, service, quality and assortment?

image enhancing strategy

which of these examples is NOT a cat strat? traffic builder image enhancer occasional turf protecting cash flow

occasional

what strategy has the follow characteristics? high margins high loyalty higher ring linked to profitable cross purchase low price sensitivity

profit generating

What role works with all the following strategies: transaction building profit generating

routine

What role works with all the following strategies: profit generating traffic building excitement creation

seasonal

what are the two different types of category strtegies?

shopper based and financial/retailer based

what drives the output from the category plan?

the retailer strategy, including the category role

The following characteristics describe what strategy? high penetration high volume sales high inventory turns high purchase frequency

traffic building

The following tactics describe what strategy? high price awareness/sensitivity frequently promoted/displayed high lifts on promos

traffic building

What strategy defines the focus on drawing shopper traffic to the store or to the department or aisle?

traffic building

what strategy has the follow characteristics? high share price awareness hh penetration frequent purchase

traffic building

which strat do retailers use these catst to bring shoppers into specific dept or aisles? traffic building turf protection transaction building image enhancing

traffic building

what are the different strategies?

traffic building, transaction building, turf defending excitement creating image enhancing which should coincide with cash and profit generating

what strategy has the follow characteristics? large transaction size drive basket spend large families impulse sell well on display

transaction building

which strat do retailers use these cats to trigger the purchase of other products/related items? traffic building turf protection transaction building image enhancing

transaction building

what strategy has the follow characteristics? high impulse purchase rates expandable consumption multiple unit pricing (e.g. 3/$1.99) less price sensitive items larger sizes more expensive premium products

transaction building (high volume triggers high profit)

what strategy focuses on increasing cat sales or the size of the average basket through increases in related category sales?

transaction building strategy

True or false: the category strategies need to be aligned to the cat role?

true

True or false? the category role is already defined as part of the retailer strategy

true

true or false? cat strats can be customized to increase creativity and uniqueness to cats for retailers?

true. customizing cat strats can add in uniqueness, but can also result in more complexity for retailers

what strategy has the follow characteristics? frequently purchased intensely preferred high price sensitive frequently promoted by competition

turf defending

which strat do retailers use to communicate their aggressive pricing strategies to consumers? traffic building turf protection transaction building image enhancing

turf protection

What strategy defends the category sales and market share against a defined competitor through competitive based pricing?

turf protection strategy

what strategy assist the retailer in creating a positive overall price image?

turf protection strategy

what strategy is assigned to a few, highly visible, frequently purchased, high ring items with competitive pricing well known to shoppers?

turf protection strategy

what strategy requires retailer to reduce prices in response to a price target competitor price reduction?

turf protection strategy

what strategy should be used sparingly as needed, because of the necessary margin investment?

turf protection strategy

True or False? Before developing the Category plan, a category strategy needs to be set.

True

True or false? Strategies are linked to roles?

True

True or false? A category strategy does not usually complement the category role.

False. The category strategy should complement the category role