Spar's category management strategy to enhance future sales and meet customers' needs

Kleintjies, Ivan Graham (2001-12)

Thesis (MBA)--Stellenbosch University, 2001.

Thesis

ENGLISH ABSTRACT: As Spar began to grow, its stores became increasingly proactive resulting in the better SPAR stores wanting to compete and to expand but being frustrated by their many conservative SPAR retail colleagues. In order to increase effectiveness and competitive advantage, SPAR had to consider a new approach. This came in the form of Category Management and the extent to which it would be understood, evaluated and implemented. SPAR was being forced to do things in different ways. Many consumer packaged goods companies believe that Category Management is the "new way". These companies are expanding great amounts of energy and cash to be the player in the category management arena. Category Management is regarded as a process that involves managing product categories as business units and customizing them on a store-by-store basis to satisfy customer needs. The ideal in this process is to identify the optimal mix and stock each store with specific products customers wish to purchase. In simple terms, Category Management can be identified as the process of bringing the right product to the consumer at the right time and price. As a discipline, this process is in its infancy within the boarders of South Africa. The scope of the study is to introduce the Spar model for implementing Category Management into the voluntary trading environment. The biggest challenge identified is that if a robust analysis process is not undertaken by SPAR, the actions of going forward would be insufficient to develop clear Category Management strategies which could be included in the overall business strategy. Without successful analysis, SPAR will not be able to transform itself successfully. Organizationally, culturally, and technically, Category Management is fundamentally different to what has gone before. Many facets of the SPAR business have to change in a relatively short space of time for Category Management to work. Category Management helps establish new strategic intents and plans. It is a go-to market strategy that, when adopted within an organization, sets the tone and direction for all strategic and tactical decisions. The Category Management process is consumer focused and is the most effective and efficient means whereby the retailer and its suppliers can together generate value for their end customer.

AFRIKAANSE OPSOMMING: Namate SPAR begin groei het, het sy winkels toenemend proaktief begin word, wat daartoe gelei het dat die beste SPAR-winkels wou meeding en uitbrei, maar deur hul talle konserwatiewe SPAR-kleinhandelskollegas gedwarsboom is. Ten einde doeltreffendheid en mededingende voordeel te verhoog, moes SPAR 'n nuwe benadering oorweeg. Dit het die vorm van Kategoriebestuur en die mate waarin dit verstaan, geëvalueer en geïmplementeer sou word, aangeneem. SPAR is genoodsaak om dinge anders te doen. Baie maatskappye wat verpakte verbruikersgoedere verkoop, is van mening dat Kategoriebestuur die "nuwe rigting" is. Hierdie maatskappye bestee groot hoeveelhede energie en kontant om dié speler in die kategoriebestuursarena te wees. Kategoriebestuur word beskou as 'n proses wat behels dat produkkategorieë as sake-eenhede bestuur word wat op 'n winkelgrondslag pasgemaak word ten einde in kliëntebehoeftes te voorsien. Die doelwit van hierdie proses is om die optimale mengsel te identifiseer en elke winkel te bevoorraad met bepaalde produkte wat kliënte wil koop. In eenvoudige terme kan Kategoriebestuur omskryf word as die proses om die regte produk op die regte tyd en teen die regte prys aan die verbruiker te bied. As 'n dissipline staan hierdie proses in sy kinderskoene binne die grense van Suid-Afrika. Die omvang van die studie is om die SPAR-model bekend te stel vir die implementering van Kategoriebestuur in die vrywillige handelsomgewing. Die grootste uitdaging is dan indien SPAR nie 'n deeglike ontledingsproses onderneem nie, die aksies vorentoe nie voldoende sal wees om duidelike Kategoriebestuurstrategieë te formuleer wat in die algehele sakestrategie ingesluit kan word nie. Sonder 'n suksesvolle ontleding sal SPAR homself nie suksesvol kan transformeer nie. Organisatories, kultureel en tegnies verskil Kategoriebestuur fundamenteel van dit wat voorheen gegeld het. Vir Kategoriebestuur om te werk, sal talle fasette van die SPAR-onderneming in 'n betreklik kort tydjie moet verander. Kategoriebestuur dra by tot die formulering van nuwe strategiese doelwitte en planne. Dit is 'n bemarkingstrategie wat, indien dit binne 'n organisasie gevolg word, die toon en rigting vir alle strategiese en taktiese besluite aangee. Die Kategoriebestuursproses is verbruikersgerig en is die doeltreffendste wyse waarop die kleinhandelaar en sy produkverskaffers tesame waarde vir hul eindkliënt kan genereer.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/49705
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