PHILADELPHIA -- Supermarket category managers have to do their job faster and more decisively, because the pace of industry change is picking up and competition is getting tougher.
That's the main lesson being taught by two buyers from a leading chain here, who double as instructors in the food program at St. Joseph's University.
The two category managers, Russ Ruby and George Giorno, teach a course on category management and buyer-merchandiser roles. They offered insight into the challenges facing today's buyers, and the skills they'll need, during a workshop at Biscuit and Cracker Distributors Association Seminar, held here late last month. The buyers requested that the supermarket chain they work for remain unidentified.
"If you're not quick enough to change, you're going to be dead," said Giorno. "The worst case scenario is a wishy-washy buyer. If I can't make a determination at the end of the sales presentation then I'm wasting both of our times, because the longer it sits, the less likely it is to go through," he said.
Giorno and his colleague presented a condensed two-hour version of their two-day course to an audience composed mostly of cookie manufacturers and distributors. Throughout, they stressed the need of buyers to stay sharp, flexible and unpredictable.
"Our objective is for any new item to be in the store and ready to go before the first [ad] ship date," Giorno said. "That is what is going to keep you on the cutting edge. There is too much competition from Wal-Marts and the Sam's that the conventional grocery stores have got to have that edge."
The duo said product can be sourced either by vendor or item, and two sets of critical factors must be taken into account. When purchasing by vendor, buyers
need to take into account logistics, quality, reputation, reliability, product consistency and quality assurance tests.
Ruby said that the reputation of the vendor will be of the utmost importance. "I'm not going to do business with someone that is going to be a problem. There are too many vendors out there you have to deal with. Don't get mad, get another vendor," he said.
Product quality is also key. "We look at product consistency and quality assurance tests. We do plant inspections and talk to the quality assurance people. We make sure that they are doing correct business practices," Ruby said.
When sourcing by item, buyers should examine test market results, planogram execution, slotting, promotional allowances, demographic appeal, consumer and trade spending levels and effects on the existing category.
"There is a network out there that tells what is being test marketed. We know what is selling well in Kansas City and in Indiana. We have even seen some crafty retailers bring in diverted loads from a test market," Ruby said.
Giorno explained how one competing retailer brought Ultra Tide to Philadelphia even though it was only being test marketed in Boise, and not yet introduced in the Philadelphia market.
When selecting by item, buyers also have to watch category trends, marketing support, deals and seasonality.
"What's happening in the category? Soft cookies are going south, so if someone comes in with a soft cookie, why would you put something in your store that is on the way out?" Giorno asked. These factors will be increasingly crucial because shelf space is going to remain at a premium, the buyers added.
"The shelf wars are going to become very, very important, more so than in the past. If you're in with a new item and it is the best item there is, but you have no retail coverage and no plan of execution on the retail side, I think you are wasting your money," Ruby said.
"You have to know where the product is going to fit, not just in the planogram, but in the whole category, and you have to know what that product is going to do for you," Ruby said.
