info@bigriversolutions.com INTRODUCTION As shoppers do more of - PowerPoint PPT Presentation

info@bigriversolutions.com

INTRODUCTION As shoppers do more of their shopping online, the e-commerce channel needs to keep up with the changing demands of shoppers and evolving channel capabilities. Many suppliers have become very adept at delivering category management initiatives for bricks and mortar stores. Unfortunately, when it comes to online or e- commerce, this can be an afterthought. The good news is that online retailers are looking for suppliers to help them grow, suppliers just need to step up. info@bigriversolutions.com

A SUPPLIERS ROLE A supplier’s role is to provide insight and guidance on how to deliver for shoppers, fulfilling their needs and expectations. The principles of category management implemented in store need to be adapted for online. When you are designing your category strategies ensure that online is part of the consideration set with specific opportunities, strategies and tactics identified. Put an understanding of your shoppers’ needs and expectations at the heart of your strategies and tactics. Buy the right data, conduct research and lead your categories. info@bigriversolutions.com

CATEGORY UNDERSTANDING CPG companies should create a data-driven approach. Buying relevant online data and when running shopper research add online as a key channel. Understanding the role that your category plays in the online channel is a good starting point. How important is your channel to the overall basket? Is your category the same online as instore? Do shoppers expect to find a different set of products in your category online, to those that they expect to find in-store? info@bigriversolutions.com

PERFORMANCE A good starting point is to thoroughly Look outside your category within your audit all online stores. What are they optimum retailers, but also look more doing overall? What are they doing broadly to other retailers who wouldn’t with my category? How is it promoted? historically sell your category. What is their range? What can you learn? Review performance. What can you copy? How is each platform performing v each other? How is my category performing? How are my skus performing? info@bigriversolutions.com

DATA DRIVEN Set KPIs, know what is expected and what good looks like. Don’t be put off by lack of data. Choose the correct metrics and try to source data to support these. Having an evolving approach, investigating and understanding shopper and channel trends, and creating suitable strategies and tactics will make you a leading supplier. This approach will give you the opportunity to sit at a retailers table. info@bigriversolutions.com

info@bigriversolutions.com

WHAT DOES GOOD ONLINE CATEGORY MANAGEMENT INCLUDE? Here we will use an old model with a new twist – the 4 P’s info@bigriversolutions.com

info@bigriversolutions.com

PRODUCT - SEARCH Key to performing well online is to be on the first page of a search and even more importantly above the fold. Setting up your products correctly is key. It is very important to understand how to influence this. The main way to do so is through product description and tagging. Understand how each sites algorithm works and how it prioritises results. info@bigriversolutions.com

PRODUCT DETAILS Ensure that products are set up Your product title is key, ensure that correctly the first time, either with any keywords are included, any unique the retailer or a product data points that your product has e.g. gluten supplier e.g. Brandbank. Ensure that free, nut free. Consider including brand, you fill in all the fields with the variant, category and size. Ask your correct data, no abbreviations, no retailers to share the most used search industry jargon. Make the most of terms for your products and categories. the space available. Don’t cut Make your product easy to find. corners. Put yourself in the shoes of the shopper, what language do they use? What search terms might they use to find your product? What do they expect to see? Try and find your product yourself, are you successful? info@bigriversolutions.com

PRODUCT PAGE This contains in-depth information about Consider including videos if showing your products. usage adds to the products proposition or highlights the product's benefits. Ensure that your product page is Shoppers find videos helpful, however optimised. Replicate all the points above keep them short, impactful and don’t re details. If as a shopper I click through rely on sound (use titles if necessary). to your products’ page, what will convert a search to purchase? What If your product has reviews, ensure information do I need? How do you that you respond to any feedback and make it compelling? Sell your products then see if the feedback is such that benefit. If your product has a USP you should consider changing any highlight it (include it in its descriptor). element of your product e.g. is the feedback about packaging – is your A detailed product description is packaging currently not fit for online essential. Include features, benefits and delivery? Ask your retailer if they have differentiators, flavour and serving a mechanic whereby the can ask suggestions. shoppers for a review of a product that they have bought. info@bigriversolutions.com

IMAGES Shoppers look at images first. Your If your retailer uses a product data product needs to be instantly supplier, ensure that if you have recognisable. Your images need to be updated your products with the a good quality and show the most up product data supplier that your to date packaging. Their file name retailers know that they have to get should be consistent with the product an update from them. description. Ensure that your images represent The primary image should be of the the product that the shopper will get product and the secondary images delivered. should show alternatives views, serving suggestions, lifestyle images or current marketing collateral. info@bigriversolutions.com

ASSORTMENT Understand key shopper missions for your retailer and Review online sales and suggest the best range ensure that the range offered reflects this and potential for the online channel (this is not necessarily the consumption occasions. Is gifting a mission? Align products same range as for bricks and mortar stores). and pack sizes to both mission and occasions. Is there an opportunity to sell online only skus The fixed space offered by traditional stores is no longer an (make sure that you identify them as such, so issue here. Unfortunately, this is also true for your shoppers don’t try to find them instore)? Bigger competition and opens up opportunities for a broader packs? Different formats? See if it is possible to range of competition and competitive categories. Online get a list of null returns i.e. products that also offers opportunities for products not traditionally sold, shoppers have searched on, but there wasn’t a where word of mouth (driven by digital channels) can drive product listed that had that description. demand. Also remember that in many instances, online Assortment is frequently used by retailers as a way to deliveries are fulfilled from bricks and mortar create a point of difference v their competition, as risks are stores Do you need to adapt the range in the reduced and lack of shelf space restrictions mean niche physical store, so that it is available online? If the brands or growing segments (on trend) can increase their orders are picked from a warehouse, your range point of difference. may be less constrained, but it still needs to be suitable for the channel. The frequency of range reviews also changes the dynamics in this channel. No longer does a retailer have to wait for a range review to come up on a timetable or store resources to be available in order to update their range, in this channel it can be done at a flick of a switch. info@bigriversolutions.com

AVAILABILITY Use the tools available to you to Some products can be affected by check the availability of your seasonal demand, ensure that this is products. A large proportion of discussed and additional volume online sales are fulfilled by the purchased to cover this demand. shopper shopping from either the last order they had delivered or from their favourites. There is a risk that if they are not able to buy your product that they will convert to another product, which will now feature in either their favourites or last times order. Will they ever buy your product again? If you are having availability issues, check whether the issue is your supply chain or the retailers. info@bigriversolutions.com

SUBSTITUTIONS After several weeks the website algorithm will suggest substitutions. Until then you should ensure that when one of your products is listed, that you suggest potential substitutions. Ensure delisted skus are removed from websites. info@bigriversolutions.com

info@bigriversolutions.com

WHERE TO PLAY Which retailers are big and /or growing? Where is your competitive set doing well, and what are they doing? Understanding where shoppers are shopping and which retailers are the best fit for your brand, may identify where you should spend your time and effort. To use an often used phrase – ‘Fish where the fish are’. info@bigriversolutions.com