Blaine Ross – President – Category Management Association “The Vision and Future Of Category Management Driving Growth in a Shopper Centric World” Blaine Ross – President – Category Management Association October 25, 2017

Agenda Category Management Association Overview Introducing Catman 2.0 the Next Generation Global Initiative Factors that determine overall success: People Data Technology Process Presentation CPG Industry Retail “Best Practices” Q & A

The CMA, a Professional Association, exists to help our members drive meaningful category and brand growth by building shopper satisfaction and facilitating strategic collaboration between retailers, suppliers and their solution providers. Certification of professional competence Sharing of best practices Encouraging member interaction Accomplished through: Talent Development Programs Driving university engagements Share Groups Best Practices Consulting Hosting the Annual Conference Publishing the industry e-Newsletter Releasing industry White Papers

Some of the CMA Member Companies Include:

Objective: Category Management Discipline Designed To Support - Military Resale Objectives Delivers Patron Savings Creates Operational Effectiveness and Reduces Costs Leverages Supplier Community in Collaborative Environment Supports Variable Pricing Delivers Assortment Optimization Personalization Designed to Create Patron Loyalty

Objective: Category Management Discipline Designed To Support - Military Resale Objectives Enhances Private Label and Branded Strategies Execute Veterans Online Shopping Benefits Creates Culture of Innovation and Sustainability Implement Technologies To Support Business Processes “Best Practices” Retail Approach

Planogram & Space Management What is the CMA? To advance professional standards in the practice of category management The association for companies who want to improve the capabilities of their professionals in: The only organization that: Certifies category management professionals through industry- wide standards Serves as an unbiased central resource for industry information and best practices Category Management In-Store Execution & Merchandising Shopper Insights & Shopper Marketing Planogram & Space Management

Collaborative Category Management Collaborative Category Management Assortment Optimization Category Definition Category Role Development Consumer Insight Decision Trees Distribution E-Commerce Collaborative Category Management Consumer Insights Financial Metrics Human Resources Joint Business Planning Logistics Marketing Merchandising National Account Teams Operations Pricing Promotion Research Sales Shopper Marketing Space Management Store Managers Supply Chain Visual Merchandising Collaborative Category Management

Weekly Newsletter (No Charge) CatMan Weekly e-Newsletter that delivers articles and thought leadership not found on the usual news and trade sites Additional newsletter features: Association Highlights Upcoming Industry Events & Webinars Tips from Solution Partners CatMan Training Retail “In The News” Highlights Conference Highlights CatMan 2.0™ Corner Share Group Meetings Job Postings

Intellectual Property Webinars Webinars connect you to the global cateman community Weekly Based Meetings Private Discussion Board Example – Walmart / P & G / JDA – 800 people attended Insights & Analytics Shopper Marketing Space Management Intellectual Property Solution Demos

Growth Strategy to Serve The Military Resale Community DIGITAL & E-COMMERCE The CMA is focused on: Continuing to grow our offerings to our members, Launching a retail and consumer professional association which includes: New functional associations that will focus on advancing the retail and CPG industry with standards and talent development and thought leadership.

Focus on Category Management Excellence Category Management Structure & Process – Key Metrics for Success

“Your” Category Management: The 5 Key Choices We All Struggle With People 1 2 5 3 4 Cat Man Process Analytic Tools Data Storage Presentation People- Maintain- Expertise- Engage Data Storage- How to manage and store all of the data? Analytic Tools- Which ones give me the best Insights? Cat Man Process- How to Align with Customers Presentation- How to present to our Customers

People Org Structure Roles/Responsibilities Reward/Recognition The #1 Choice – Are we investing in our most important resource? Employee Retention and Recruitment Org Structure Roles/Responsibilities Reward/Recognition Training People

Using Universities For Category Management Recruitment

Some of the Companies Involved in The Certification Development Process

Category Management Leadership Competency Defines the characteristics (knowledge, skills abilities) required to enable success in performing a specific area of work

CMA’s Certification Program Mission The Certification Program was developed to improve the professionalism of industry talent by: Establishing industry standards to Evaluate industry training Stratify industry talent The standards and certification are intended to provide direction for the continuing development of employees

“The Certification Scorecard” Simplistic approach 3 levels required fundamentals plus recommended skills Adaptable flexible for companies, big and small will improve over time

Certification Benefits For The Military Channel What it means for: The Individual Demonstrates mastery of CatMan knowledge & skills Creates personal competitive advantage Provides path to career advancement and personal development The Organization Creates marketplace competitive advantage Investment in talent reduces turnover Ability to evaluate candidates and make informed hiring decisions Benefits Acts as a global, common language between academia, retailers, manufacturers, providers & more Recognized & adopted industry standards An objective 3rd party evaluation

The Changing World of Category Captaincy Leveraging Suppliers, Brokers, and Distributors

Insights that deliver the Patron Need to answer the key questions for Military Resale, Competitors and Brands Marketplace Analysis What is happening? Why is it happening? How should I respond? Patron

The Category Manager of Tomorrow Focused on understanding and delivering the changing Shopper Work to be done Skills and Technology Needed Planogram Development Use tools to cut planogram time in half with better accuracy and results. Weekly Reporting/Year review Automated Shopper and Marketplace What drive Behavior Bricks/Mortar E Com Pick Up On Line Shelf ?? New Merchandising Analysis Digital Offers/Ads On line Content Familiar with all New Data Sources Syndicated and Retailer HH Panel E-commerce Digital Ads/offers/coupons/pricing Social Data – trends/likes Analytics to deliver insights to prioritize strategies that deliver shoppers.

What Do Retailers Expect from Suppliers? A knowledgeable Account Team or Rep who is industry certified and understands retailer objectives Armed with relevant data and research Providing Key Facts and Shopper Insights Offering “ Success Models”

Retailer first questions to ask their supplier Sales & Category Management Teams Please tell me the five most important facts or insights that I should know to plan our business together. Please tell me the most important changes that have occurred in your category since we last talked.

2) Data Warehouse -Are we spending 80 % of our time analyzing ….. Flexible Fast Enable Expandable Data Warehouse ….. Or 80% of our time GATHERING.

3) What Is your best and most used analysis tool … Extraction Analysis Data Visual Predictive Tools EXCEL???

Category Management –How Does Military Channel Compare Category Management –How Does Military Channel Compare? Maturity Curve Components

Process Cat Man 2.0 Best Practices Customer Defined Pathways 4) Key Process Cat Man 2.0 Best Practices Customer Defined Pathways Process

Presentation Dynamic (on the Fly) Strategies/Tactics Execution 5) Do you stand out …. Dynamic (on the Fly) Strategies/Tactics Execution Evaluation Presentation Or are you trying to power point them to death?

The Key Learning’s to deliver Insights Having the Right Data/Process is solving 40% of the issue. it gets you to the what……. Having the Right People/Training is solving 40% of the issue. it gets you to the why …… Having the Right Tools/Data Viz is solving 20% of the issue. It gets the other people to the what and why….. Then you can focus on “How”

Vision & Future of Category Management CatMan 2.0™ Vision & Future of Category Management

Who created CatMan 2.0TM Solution Providers Retailers Manufacturers Acosta, Brick Meets Click, Decision Insight, Interactive Edge, IRI, JDA, Kantar Retail, Learning Evolution, Market Track, McKinsey Periscope Retailers Walmart, Ahold, 7-Eleven, Sam’s, Walgreen’s Manufacturers Church & Dwight, ConAgra, Dannon, McKee, Mondelez, Procter & Gamble, Red Bull, Reynolds, Republic National Distributing CatMan 2.0 has basically been created by the CPG industry, retailers, manufacturers and leading solution providers Retailer participants were Sam’s, Walmart, 7-Eleven, Walgreens, and Ahold Manufacturers included Procter & Gamble, Red Bull, McKee foods, Church & Dwight, Dannon, ConAgra, Mondelez, Republic National Distributors and Reynolds Products Solution Providers were Acosta, Decision Insight, Interactive Edge, IRI, JDA, Learning Evolution, Mckinsey Periscope, and Market Track

CatMan 2.0 (17) Key Segments Organizational Design & Development Internal Alignment Category Definition & Category Decision Tree Category Role Development Assessment “What” Assessment “Why” Scorecard Strategy Shopper Marketing 10. Assortment & Space 11. Pricing 12. Shelf Merchandising 13. Promotion 14. Deployment 15. Supply Chain 16. ROI 17. E-Commerce

CatMan 2.0™ Process Global Industry Initiative

What: The End State Vision for CatMan 2.0™ A digital resource offering the latest advancements in category management. CatMan 2.0™ differs from CatMan 1.0 in two important ways: Content & Functionality. Content differences includes: Advances in data and analytics Advances in shopper insights and marketing, need state marketing Success models and content learning across the process Enhancements in organizational skills and capabilities Format and functionality includes: Organization of a digital CatMan Knowledge Center managed by the CMA A taxonomy derived from the basic seven step process A querying and search function Continuous updating from all CPG community stakeholders

ANALYTICS & DATA INTEGRATION Social Media UnderstandingThe Patron’s Integrated Path to Purchase? Relationship Marketing Deals Search Engine Optimization Displays and In-Store Ads Shopper Marketing needs & attitudes pre-shop media consumption User and Advocate Created Content familial legacy loyalty shopper type by category Apps/Shopping Tools re-purchase intent recommendation intent occasion GAP ANALYSIS consulting & assessment CLOSE KNOWLEDGE GAPS identify right methods & technologies ANALYTICS & DATA INTEGRATION RECOMMENDATIONS CREATE & TEST family satisfaction channel choice product satisfaction list-building post-purchase Shopper’s Path to Purchase retailer choice in-store pack communication pack standout store experience promotions store dynamics store atmosphere signage Category Review shopping style shelf layout shopping basket Plan Implementation point-of-purchase shopping route Category Tactics in-store advertising Category Definition CatMan Category Strategy Category Role Category Scorecard Category Assessment

2018 CMA Conference You Are Invited Date: May 7th – May 9th Location: Gaylord Opryland Resort & Convention Center- Nashville, Tennessee Conference Theme: “Influencing the connected shopper: Integrating insights and analytics to drive growth”

Annual CMA Conference The CMA Conference is known for its: Excellent networking environment Focus on best practices across multiple categories and channels Total retail development strategy What the 2018 Conference Offers Keynote Speakers Breakout Sessions A Speed Networking Event IP Presentations Solution Provider Demos Conference Training Sessions Networking Receptions & MUCH more www.catman.global/events/annual-conference

SUMMARY Embrace Catman 2.0 Invest in Training For Your Team Industry Best Practices “Drive Growth” Call Category Management Association If You Need Help

Thank You for all you do to support our Military Families! Key Contact Information: Blaine Ross –President – Category Management Association bross@cpgcatnet.org 630-927-7473