SpendEdge, a leading provider of category market intelligence solutions, has announced the completion of their latest presentation on how category management strategy can help retailers reap monetary benefits. The article offers detailed insights into the benefits of category management reaped by our clients. The article also highlights how category management strategies can help retailers to identify key value categories, increase category sales volume, and reduce organizational spend.
Calculating Price Awareness Score by Deploying an Effective Category Management Strategy
With increasing complexities in the retail-CPG industry, it has become crucial for companies to analyze their category management strategies. One of our clients, a leading CPG company in Europe, was facing difficulties in achieving their desired category growth. They wanted to identify key value categories (KVCs) and key value items (KVIs) to optimize pricing and improve profitability. While analyzing product categories, they also wanted to increase their sales volume.
The category management services offered by our experts helped the client to develop a robust category management strategy and identify 50 KVCs that accounted for more than 50% of the client’s total sales. Additionally, the improved category management process helped the client to analyze transaction data, determine the frequency of purchase, calculate the price awareness score, and improve profit margins by 11%.
Proactively Managing the Procurement Expenditure to Reduce Organizational Spend
Improving brand awareness and driving business growth has always been a challenge for companies in the food and beverage category. A renowned food and beverage brand was facing increasing pressure to reduce costs in the wake of a declining economic landscape. They wanted to centralize all their sourcing and procurement operations to gauge new procurement cost management opportunities.
To help the client address such challenges, our experts developed a robust category management strategy to fully leverage their purchasing decisions by focusing on the external supply market. They focused on buying-channel optimization to monitor contract utilization and compliance. This helped the client to proactively manage the procurement expenditure and reduce organizational spend.
Achieving Savings of $6 Million for a Fashion Retail Firm
The fashion retail industry poses a plethora of challenges for category managers when it comes to driving profitability through different categories. The client, an American multinational retail-clothing firm decided to leverage our expertise to address declining profit margins. They wanted a structured approach to manage different categories and distinct areas of expenditure.
During the course of this engagement, our category management specialists tailored a comprehensive research methodology to remodel their procurement services. They conducted an in-depth market analysis to help the client strengthen stakeholder relationships and achieve savings of $6 million over a period of one year.
SpendEdge delivers robust, real-time category management solutions to help sourcing and procurement professionals to manage supply chain. Our innovative category management solutions help enterprises to transform the structural capabilities of businesses and improve execution efficiency. Our state-of-the-art category management solutions also help enterprises to transform structural capabilities, improve execution efficiency, and achieve better cost savings. We provide businesses with actionable insights and techniques to improve their category management capabilities.
