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Group 7 - Case 9

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Abhigyat Chaitanya
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54 views8 pages

Group 7 - Case 9

Uploaded by

Abhigyat Chaitanya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Managing the competition:

Category Captaincy in the


Frozen Food aisle
Group 7
•Arpit Purohit - 1910008
•Ashutosh Kumar Singh - 1910009
•Seepana Divakar - 1910046
•Vaishali Chandani - 1910059
About the Case
• The executive (Mr. Wilson Chen) of "freezer food", a ready-to - eat food manufacturer, has just been told by a
major customer (Big City Groceries), a retail supermarket chain, that he wants one of his two suppliers (i.e.
freezer food & TV food) of frozen food to take over as a category captain.

• The captain of the category is a third party, usually a manufacturer, who manages a category of goods for a
retailer. The Category Captain would be responsible for the planning of the assortment, determining of which
SKUs to store and the selling price for each SKU.

• The executive needs to think through the objectives of the Captaincy category from the point of view of the
retailer and develop an attractive bid to win the Captaincy category.

• In doing so, the executive develops an opinion, on the benefits and challenges associated with category
captaincy from the point of view of four parties: 
1. The retailer,
2. The winning captain,
3. The manufacturer whose rivals becomes the category captain,
4. Consumers.
How aggressive should Chen be in pursuing the opportunity to be a
category captain? 
Yes, Chen should aggressively pursue the opportunity because as per exhibits &
case he will get below benefits :-
• Increased Revenue
• More Selling Space
• Increased BDI
• High Assortment Share
• Increased SKUs
• Increased Profit
• Opposite impact of above benefits if TV meals gets this opportunity
• Bigcity Grocers has 20% market share in ready-made meals
• Opportunity of getting consumers not brand loyal (70%)
• Access to competitor's information
• Influence over assortment & prices for competitor’s SKUs
• Increasing profits - According to case exhibits, post the
category captaincy agreement, revenue increased, index of
selling space significantly increased & retailer profits
WHY SHOULD A almost doubled for the category.
RETAILER OPT • Effective category management– Product category
managers are well versed with the category. They know the
FOR CATEGORY product attributes, consumer behavior, variety etc. For
their product category.
CAPTAINCY • Reducing their own burden – Category Captain takes care
ARRANGEMENT of Product Assortment in the category, stocking, pricing,
logistics etc.
? • Insights– Category expertise of category captain may bring
in useful insights & resultantly improve the current Plan-o-
gram, displays, space utilization &/or customer experience.
• More sales and more profits.
WHY SHOULD A • Better share of assortment, better Brand Development
BRAND BECOME Index (BDI).
• Control on prices of products in category, both ours &
CATEGORY CAPTAIN? competitors, control on shelf space & assortment.
• Better retailer relationships
Benefits & Challenges for consumer of category captain products in
that category

BENEFITS CHALLENGES

• Time saved as fewer variety is there to • Lower variety of brands


choose from

• Range of price for products are controlled by


• Offers & discounts for captain brand products the captain

• Assurance for availability of captain brand's • Loyal customers to another brands may face
products issues with availability of their preferred
brand's products
What dampens the ability of the captain to interfere with a competitor
profits

• Category captain needs to project how price would impact sales of the SKU & also the sales of all other SKUs in
same category

• Retailer will expect category captain to maintain the SKUs of all the brands

• To effectively plan assortments & price goods appropriately, captain need to have information on sales,
including rivals

• The category captain was gatekeeper to the retailer

• Taking care of inventory turns, stock-outs


What should a Manufacturer offer

• Data-intensive and analytical decision making to ensure products are available without tying up capital &
valuable shelf space.

• Specialist knowledge about the product category including plan-o-gram design, in-charge of re-stocking

• Direct in-store delivery of all category assortments

• Profitability in the complete product category

• Pricing decisions of SKUs keeping in mind the sales of SKUs in same category
THANK YOU

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