Strong management
Sir, I read your article concerning Christine Tacon’s launch of an investigation into the Co-op with interest. As category management and ranging experts, we have been involved in a number of Co-op’s ranging processes across multiple categories.
We have also extensively used the Answers on Demand system (Co-op’s & Nielsen’s data and insights tool). This allows a category manager (and buyer) either from a supplier or from the Co-op to analyse a range with incredible granularity, making accurate decisions on how to provide the best service.
Only by employing strong category management principles can a retailer win on its KPIs around growth and share. This means using insight and analysis to gain an understanding of shopper missions. We can then utilise this to build an effective range of products. Unfortunately this can mean some brands face delists.
Some suppliers may rightly be aggrieved at how the decisions Co-op have made have been handled. Suppliers have also invested time and monies in this category process.
However, it is important to bear in mind that the Co-op is one of the more progressive retailers using these principles of category expertise to ‘understand’ shoppers. Buyers and brands who collaboratively take advantage of this approach are more likely to experience positive long-term performance.
Dave Marston, director of category insight, Category Wins
Consumer insight
Sir, Millennial mums and dads are forcing a change in the products that big brands sell, shifting their tastes away from sugary food and drinks, towards more natural and organic products. Pepsi now derives 45% of its revenue from ‘guilt-free products’, and both Coca-Cola and McDonald’s have announced they will be moving toward healthier offerings.
Having a customer-centric approach is the strongest way for brands to continue to meaningfully engage with audiences of parents. By understanding patterns of behaviour, it’s possible to group parents into categories that will allow personalisation.
Maxine Fox, MD, Giraffe Insights
Boozy Coca-Cola
Sir, I was interested to read that Coca-Cola is planning to launch its first alcoholic drink in Japan. It’s encouraging to see Coca-Cola explore areas outside its core offering.
It will be interesting to see whether this is a tactical opportunity in Japan, or whether it proves to be a bigger strategic opportunity for Coke to benefit from the wider global trend in low-alcohol beverages. And with the growth of sake and all things Japanese in the western world, could this be a chance to bring Chu-Hi to the west? Or an opportunity to replicate this model in other markets?
Elizabeth Finn, managing director, Cowan London
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