This is the fourth of eight steps to mastering category management. We're halfway there!
Goal setting is an important part in any business function. Without goals, how will you know when you've reached an objective? More importantly, goal setting is the roadmap to helping you achieve the results needed to successfully grow your business.
Scorecarding is advanced goal-setting. The category scorecard is organized and broken down into micro goals all designed to grow category, segment, brand and item sales. Goals should also be focused on increasing consumer foot traffic in the natural store.
The completed scorecard should identify the strategic allocation of work to be performed to reach your goals and objectives, including an assessment of consumer buying habits. They should be specific, not general. The more specific the goals, the easier they are to target and assess.
Goal setting should align the manufacturer’s brand strategies for the category with the retailer’s. Accordingly, as true category experts, manufacturers should be a key part of any scorecarding project. Together, they can help each other reach their goals for sustainable sales growth and market penetration.
4 steps to scorecarding success:
- Simply set the goals and objectives for the category. This can include a sales volume goal in addition to taking a leadership role in the market and the category.
- Break the goal down into bite-sized components that should include specific objectives defining the goal, identifying who's responsible for achieving each of the objectives, a timeline for completion, and an understanding what the successful completion of the goal will look like when reached.
- Next is goal measurement. You need to identify a way to measure the goal at each step of the process. A good idea is to establish a benchmark for each goal against which to be measured. For example: a goal to increase sales and profits by 5 percent over the next year may include eliminating out-of-stocks during a promotion, better product merchandising, improving category signage or item selection, matching a competitor’s price point on key items, boosting promotional effectiveness, increasing the size of each transaction (market basket), etc. The consumer should also be a big consideration at every step of this planning process. Meeting their needs must be the focus if you want a competitive advantage.
- Now implement of the plan. Nothing happens until someone sells something. Well-organized and well-thought-out goals are the roadmap to success. Putting the plan to action is where you see the results of all that planning.
All retailers and manufacturers should use some form of goal-setting to plan for sustainable growth.The scorecard is an ideal way to organize, measure and manage those goals.
What strategy do you use in goal setting?