What methods can you use to identify areas of opportunity for improvement in a category plan?

1 Analyze sales performance

One of the most basic and essential methods to evaluate a category plan is to analyze the sales performance of the category and its subcategories, segments, and items. You can use various metrics, such as sales volume, sales value, sales growth, market share, penetration, frequency, and basket size, to measure how well the category is performing against the targets and benchmarks. You can also compare the sales performance across different channels, regions, stores, and time periods to identify trends, patterns, and gaps. By analyzing sales performance, you can pinpoint the strengths and weaknesses of the category plan and determine what actions are needed to improve the results.

2 Conduct customer research

Another important method to evaluate a category plan is to conduct customer research to understand the needs, wants, preferences, behaviors, and satisfaction levels of the target customers. You can use various methods, such as surveys, interviews, focus groups, observations, loyalty data, and social media feedback, to collect customer insights and feedback. You can also segment your customers based on different criteria, such as demographics, psychographics, purchase history, and loyalty status, to understand their different motivations and expectations. By conducting customer research, you can identify the opportunities and challenges of the category plan and align it with the customer value proposition.

3 Assess competitor activity

A third method to evaluate a category plan is to assess the competitor activity and performance in the same category. You can use various sources, such as industry reports, market data, trade publications, store visits, and online reviews, to gather information about the competitor's strategies, tactics, strengths, weaknesses, and market position. You can also compare the competitor's product assortment, pricing, promotion, placement, and merchandising with your own to identify the points of difference and similarity. By assessing competitor activity, you can identify the threats and opportunities of the category plan and differentiate your competitive advantage.

4 Review category tactics

A fourth method to evaluate a category plan is to review the category tactics that are implemented to execute the category strategy and achieve the category objectives. You can use various tools, such as scorecards, dashboards, reports, and audits, to monitor and measure the effectiveness and efficiency of the category tactics. You can also evaluate the impact of the category tactics on the key performance indicators, such as sales, profit, margin, inventory, turnover, and customer satisfaction. By reviewing category tactics, you can identify the best practices and areas of improvement of the category plan and optimize the resource allocation and return on investment.

5 Solicit stakeholder feedback

A fifth method to evaluate a category plan is to solicit stakeholder feedback from the internal and external partners who are involved in or affected by the category plan. You can use various methods, such as meetings, workshops, surveys, and interviews, to communicate and collaborate with the stakeholders, such as suppliers, distributors, retailers, store managers, category managers, and merchandisers. You can also solicit their opinions, suggestions, and concerns about the category plan and its implementation and outcomes. By soliciting stakeholder feedback, you can identify the issues and opportunities of the category plan and foster the stakeholder engagement and commitment.

6 Apply SWOT analysis

A sixth method to evaluate a category plan is to apply SWOT analysis, which is a strategic tool that helps to identify the strengths, weaknesses, opportunities, and threats of the category plan. You can use the SWOT analysis to summarize and synthesize the findings from the previous methods and to assess the internal and external factors that affect the category plan. You can also use the SWOT analysis to generate and prioritize the action plans and recommendations that will address the gaps and leverage the strengths of the category plan. By applying SWOT analysis, you can identify the areas of opportunity for improvement of the category plan and align it with the strategic goals and vision.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?