An Effective Category Management Solution for Modern Trade
The Seventh International Research Conference on Management and Finance (IRCMF 2012)
Retail Mate: An Effective Category Management Solution for Modern Trade Retail
Outlets and FMCG Companies in Sri Lanka
Gayani Fernando1
Gayathri Ranasinghe2
Abstract
Modern trade retail industry in Sri Lanka is a rapidly growing industry, which is accountable for a significant share of the retail industry of the country due to the mushrooming of supermarkets. It was discovered that both supermarket chains and companies which supply fast moving consumer goods to them experience considerable losses on profits due to the slow movement of well performing brands which exists due to the non-existence of a standard method to manage the assortment mix and the shelf space allocated to them. This has also resulted in customer dissatisfaction. Hence, this study was initiated in order to find an accurate solution to this problem. The inductive research approach was adapted for the study. The research was initiated by carrying out an in-depth literature survey. In addition, an industrial survey was conducted by carrying out semi-structured interviews and online questionnaires with personnel related to supermarket chains, supplier companies and supermarket shoppers. Sample of 100 valid responses were received from the industry personnel while 115 valid responses were received from shoppers through the questionnaire.
This revealed that the problem exists due to retailer’s lack of resources and expertise. Further, the existence of a communication gap between supermarkets and FMCG suppliers was also discovered. In relation to the findings ‘category management’ a retailer concept which focus on managing product categories as strategic business units was proposed. This was facilitated by the development of an IT solution which enables the supermarkets and it’s suppliers to collaboratively make strategic decisions related to product categories through information sharing
Retail Mate: An Effective Category Management Solution for Modern Trade Retail
Outlets and FMCG Companies in Sri Lanka
Gayani Fernando1
Gayathri Ranasinghe2
Abstract
Modern trade retail industry in Sri Lanka is a rapidly growing industry, which is accountable for a significant share of the retail industry of the country due to the mushrooming of supermarkets. It was discovered that both supermarket chains and companies which supply fast moving consumer goods to them experience considerable losses on profits due to the slow movement of well performing brands which exists due to the non-existence of a standard method to manage the assortment mix and the shelf space allocated to them. This has also resulted in customer dissatisfaction. Hence, this study was initiated in order to find an accurate solution to this problem. The inductive research approach was adapted for the study. The research was initiated by carrying out an in-depth literature survey. In addition, an industrial survey was conducted by carrying out semi-structured interviews and online questionnaires with personnel related to supermarket chains, supplier companies and supermarket shoppers. Sample of 100 valid responses were received from the industry personnel while 115 valid responses were received from shoppers through the questionnaire.
This revealed that the problem exists due to retailer’s lack of resources and expertise. Further, the existence of a communication gap between supermarkets and FMCG suppliers was also discovered. In relation to the findings ‘category management’ a retailer concept which focus on managing product categories as strategic business units was proposed. This was facilitated by the development of an IT solution which enables the supermarkets and it’s suppliers to collaboratively make strategic decisions related to product categories through information sharing
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