Category captains

1
Category captains in LENTABasic principles of
cooperation
2
WE ARE INTERESTED IN ATTRACTING Category
Captains!
Category Captain is Lentas partner having the
priority of category management in Lenta, as well
as receiving all information about Lenta,
required for this purpose.
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3
WE ARE INTERESTED IN ATTRACTING Category
Captains!
Being a category captain implies serious
responsibility. That is why Lenta category
captain status can only be given to a supplier
after multiple negotiations and under the
condition that he meets the following basic
requirements

• HAS HAD CONSIDERABLE WORK EXPERIENCE IN THE
  CATEGORY
• HAS BEEN LENTAS LOYAL SUPPLIER
• SHARES AND IS PREPARED TO ACHIEVE LENTAS GOALS
  IN CATEGORY PROMOTION
• IS PREPARED TO INVEST INTO LENTA CATEGORY
  PROMOTION

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4
CATEGORY CAPTAIN AIMS AT GENERAL PROMOTION OF
CATEGORY IN WHOLE
CATEGORY GOAL to provide for like4like category
turnover gain exceeding the one provided by the
markets natural growth rates
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5
CATEGORY CAPTAINS INSTRUMENTS
ASSORTMENT
NAVIGATION
LAYOUT PRINCIPLES
TRADING EQUIPMENT
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6
CAPTAIN USES ACTUAL AND RELEVANT DATA
Category in whole shall be analyzed
SKU of all suppliers shall be analyzed
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THE LIST OF PARAMETERS FOR CATEGORY ANALYSIS
SHALL BE DETERMINED IN THE COURSE OF NEGOTIATIONS
Depending on the project tasks, data structure of
may change
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8
RECOMMENDATION IS GIVEN IN THE FORM OF SPACE
PLANS
Before
Sparkling and non-sparkling water mixed
Table and drinking water together
Expensive and cheaper brands mixed
Brands in mixed volume are placed in different
sections
Shelf navigation is missing
Big packages occupy much shelf space
Sample space plan in category Water
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WITH DETAILED DESCRIPTIN AND SUBSTANTIATION OF
CHANGES
Shelf navigation in place
After

• Change of assortment structure per segments
• Change of goods layout principles
• Change of navigation
• Change of trade equipment
• The list of SKU offered for withdrawal (with
  consideration of new products, underdeliveries,
  etc.)
• The list of SKU offered for introduction to the
  goods range (with substantiation)
• Space plans and schemes showing the changes
  offered

Brands within one segment are placed according to
prices
Table and drinking water is placed in different
sections
Sparkling and non-sparkling water is separated
and supplied with proper navigation
Big packages are placed only on pallets
Within a segment and brand various package
volumes are placed next to each other
One of the proposals for outlay optimization.
EXAMPLE! NOT REALIZED YET
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10
RECOMMENDATIONS THAT WILL NOT BE CONSIDERED

• If they unreasonably infringe upon the interests
  of the other category and/or private brand
  suppliers
• If data not relating to the considered category,
  channel, time period, region are used for
  substantiation
• If they do not promote the categorys goals
• If they do not correspond to Lentas standards

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ALL PROJECT PARAMETERS ARE GIVEN IN ONE DOCUMENT

• Terms and definitions
• Goal of the project
• Stores where the project is realized
• Stages of the project
• Representatives of the parties, involved in the
  project
• Rights and responsibilities of the parties
• Cost of services and payment order
• Data exchange and recommendation requirements
• Data confidentiality
• Liabilities of the parties
• Miscellaneous conditions

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PROJECT APPROACH TO COOPERATION

• Tasks
• Members
• Persons in charge

• Timing
• Budget
• Performance evaluation

time
II-nd quarter
IV-th quarter
I-st quarter
III-rd quarter
Suppliers apply to Commercial Service, to their
category manager
Lenta together with Category Captain make resume
of the project
Timing of the project greatly depends on category
goals and comprehensiveness of the offered changes
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MOST STAGES OF THE PROJECT ARE REALIZED IN CLOSE
INTERACTION BETWEEN CAPTAIN AND LENTA
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DISTRIBUTION OF THE ROLES OF CS AND MD IN LENTA

• Setting goals and tasks, definition of
  restrictions

• Submission of data

• Planning of target investigations

• Selection of category captain, determination of
  cooperation terms

• Checking the relevance of recommendations

• Estimation of recommendations

• Decision-making

• Estimation of commercial efficiency

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THE ACHIEVED RESULTS
LIKE4LIKE SUB-CATEGORIES GROWTH DYNAMICS,
???????????? ???????? ????????
Data provided by SAP BW, 2006 2008 (sale
volumes of the stores that worked since 2006 are
compared month by month, year by year)
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THANK YOU FOR YOUR KIND ATTENTION !
Alexey.Orlov_at_lenta.com
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