How can you develop a category plan for a seasonal category?

The first step to understand the category and its dynamics is to conduct a category review. This should cover the size, growth, and profitability of the category in your market and store, as well as customer segments, needs, preferences, and behaviors related to the category. Additionally, you should review the competitive landscape and trends that affect the category and its seasonality. Lastly, you should evaluate any gaps, issues, or opportunities that exist in your current category performance and assortment. By doing this, you can uncover key insights and implications that will guide your category plan.

To develop a category plan for a seasonal category, start by understanding the unique characteristics of the season, such as consumer preferences and buying patterns. Analyze historical sales data, identifying peak seasons and product demand fluctuations. Conduct market research to anticipate trends and competitor strategies. Collaborate with suppliers to ensure sufficient stock and timely deliveries. Tailor marketing and promotional efforts to align with seasonal themes. Regularly review and adjust the plan based on real-time sales data and customer feedback for continuous improvement.

Understanding the category is an essential to any business plan. This leads to navigate a SWOT analysis of the category which could help us to understand whether the plans are based on 1. Conversion through increase in category penetration 2. Taking market share & its complexity 3. Category size increase by creating consumption opportunities 4. Taking volume by focusing on all above points These insights determine a solid workflow plans in place to excel the business opportunity.

Understand category as well as seasonality. Identify the key seasons that impact the category. Understand the demand patterns, peak seasons, and off-peak seasons. Analyze historical data to identify sales trends during different seasons.

Understanding the category trends and seasonality is the first step. 1. Based on the business plan and objectives, category growth is defined for the seasonal products. This should be done early enough to ensure product inventory is planned ahead to ensure availability of products during peak season. 2. Understanding category dynamics and consumer behavior coupled with market trends and insights to ensure the right 3. Keeping an eye on competition and ensuring that largest assortment and the best price points are offered to consumers, this would ensure the retailer leads with a lion market share.

Objective setting becomes easier once we know enough about the category insights including competitive environment.We can now create a plan focusing on metrics below - 1. Volume by leading to add the category penetration from X to X+ 2. Volume by taking % market share from existing players by placing a distruptive strategy 3.Volume by focusing on RTM specially last miles 4.Addition in PCC by creating consumption opportunities These metrics can help to create sizeable scope.

The second step is to define the objectives for the category. You need to set SMART (specific, measurable, achievable, relevant, and time-bound) goals that align with your overall business strategy and customer expectations. For example, you may aim to increase the category sales by X% during the peak season, improve the category margin by Y% through cost and price optimization, enhance customer satisfaction and loyalty by Z% by offering a differentiated and relevant assortment, and grow the market share by W% through attracting new customers and increasing the basket size. By setting objectives, you will be able to measure the success of your category plan and track your progress.

Analyze the seasonal patterns of your industry and identify peak seasons, off-seasons, and any fluctuations in demand. Gather data on consumer behavior, preferences, and trends during different seasons. Identify competitors' strategies during peak and off-peak seasons. Identify different customer segments and tailor objectives based on their seasonal preferences and needs. Include both short-term goals, such as increasing sales during peak seasons, and long-term goals, like building brand loyalty throughout the year. Develop objectives related to efficient inventory management to avoid overstock or stockouts during peak and off-peak seasons. Define objectives for creating effective promotions and discounts during peak seasons to drive sales

Plan promotions and marketing activities around key seasons. Use season-specific themes and messaging to attract customers. Consider offering discounts, bundles, or limited-time promotions to drive sales during peak seasons. Design the store layout or online display to highlight seasonal products. Utilize seasonal colors, decorations, and themes to create an immersive experience for customers. Ensure that the visual merchandising aligns with the overall brand image.

Category that exist demands a differentiation in offerings- A product that solves a problem statement at large A product that has better value proposition A product that covers needs of different demographics A product that has attractive value chain for trade A product that defines better ROI over competition

The 2 edged sword between don’t burn out and don’t rest too long. During peak season of demand, if that fits your product segment, challenges arise and we both say this. “When the rush is over we need to fix this glitch!” The challenge is identifying that day. You both need some down time or in some cases a reflecting time on the solutions. Was this issue an inventory, transportation, weather, or a raw material shortage? Too often life happens and the meeting isn’t scheduled. Understand the preferred communication of the customer first. Are they more apt to open/read a letter, an e-mail, text, answer or return a phone call, or accept a non scheduled drop in? Begin with, “You have been on my mind to solve our glitch, I have answers!”

The third step is to develop the strategies for the category. You need to decide how to leverage strengths and opportunities, while also addressing weaknesses and threats, in order to achieve objectives. For a seasonal category, this may include segmenting and targeting customers based on their needs, preferences, and behaviors; differentiating and positioning the category based on its value proposition and benefits; optimizing the assortment with the right products, brands, varieties, sizes, and quantities; managing inventory by forecasting demand and replenishing stock; promoting the category to create awareness, interest, and action among customers; and merchandising the category with an appealing display.

The fourth step in the process is to implement the tactics for the category. This requires taking specific actions and allocating resources. For example, you need to develop and execute a customer segmentation and targeting plan based on data and research, create and communicate a unique selling proposition and a clear value proposition for the category, select and source products that meet customer needs and preferences, plan and schedule inventory levels and deliveries based on the demand and supply curves, design and launch a marketing campaign that showcases the category benefits and features, as well as set up and maintain a merchandising planogram that follows the category layout, space, and flow principles.

In my perspective, the implementation of tactics for a category is the tangible realization of strategic planning. It involves a hands-on approach, requiring the allocation of resources and specific actions to bring the strategy to life. Executing a customer segmentation plan based on robust data is pivotal, ensuring tailored approaches that resonate with diverse customer needs. Crafting a unique selling proposition and a clear value proposition enhances the category's market positioning. The meticulous selection and sourcing of products aligned with customer preferences contribute to the overall success. Planning inventory levels based on demand and supply curves reflects adaptability to market dynamics. .

The fifth step in the category planning process is to monitor the performance. To do this, you need to collect and analyze data and feedback that reflect the results of your category plan. Performance indicators that are useful for seasonal categories include sales, margin, and profit; market share, penetration, and frequency; customer satisfaction, loyalty, and retention; product availability, sell-through, and turnover; marketing effectiveness, reach, and conversion; as well as merchandising compliance, appeal, and convenience. Evaluating the impact of your category plan with these performance indicators will help you identify areas for improvement.

Regularly analyze sales data and customer feedback to refine the category plan. Identify successful strategies and areas for improvement. Use data to make informed decisions for future seasonal planning. Regularly review the effectiveness of the category plan. Be flexible and willing to adapt the plan based on changing market conditions, customer preferences, and other relevant factors.

Monitoring performance involves tracking, assessing, and analyzing various metrics or indicators to evaluate how effectively tasks, projects, or individuals are progressing towards their objectives. It's about regularly checking key performance indicators (KPIs), gathering feedback, and making adjustments to ensure optimal outcomes. This process helps in identifying areas for improvement and recognizing successes.

A melhor forma de mapear a sazonalidade do seu setor de atuação é acompanhar dados e indicadores de vendas por meio de sistemas como o de CRM (Gestão de Relacionamento com o Cliente). A partir da análise dessas informações, é possível gerenciar a demanda, entender picos e quedas de consumo e definir metas realistas à equipe comercial.

The sixth step is to adjust the plan for the category. You need to review and revise your category plan based on the performance outcomes and the changing market conditions. This could involve modifying objectives if they are too ambitious or too easy, changing strategies if they are not working or not relevant, adapting tactics if they are not effective or not efficient, optimizing resources if they are not sufficient or not optimal, and implementing best practices while learning from mistakes. Through adjustments, you can optimize your category plan and ensure its continuous improvement and success.

In my perspective, the ability to adapt and adjust the category plan is an essential skill in navigating the dynamic landscape of market conditions. Regularly reviewing and revising the plan based on performance outcomes and market changes is not just a necessity but a strategic imperative.

verifique a demanda e a quantidade de vendas realizadas nos últimos três ou cinco anos; analise o desempenho coletivo e individual da equipe comercial nos últimos anos; se possível, consiga dados de vendas de concorrentes e parceiros do mesmo período; identifique todos os investimentos feitos em campanhas de marketing e vendas; reúna quantidade de contratações feitas, treinamento oferecidos, tudo que impacte os resultados de vendas; analise o cenário político e econômico do país e do mundo durante o período determinado. Depois, é hora de cruzar todos os dados e as informações para gerar insights completos e realistas, que indiquem momentos de alta e baixa temporada de vendas.

One big challenge seasonal categories face is inventory management. I have seen this across different FMCG companies I worked with, particularly with beverages that are popular during the summer & second summer seasons. The main difficulty lies in accurately forecasting demand. Excess stocks can mean heavy liquidation spends resulting in significant financial losses. Hence the brand really needs to be agile. Another essential aspect of managing seasonal categories is flawless execution in the stores. Typically, with these categories there is an element of impulse buying . Also there are temporary brands that only appear during the season. Hence maintaining top-notch merchandising across various touchpoints is imperative to maximize sales.

Seasonal top points: - do the planning in advance for the year - contract upfront 6-9 months ahead - fine tune a quarter ahead - think through your offer and learn about every sku. Make assortment so that BCG matrix is completed and matching your budget - plan rollout to the detail. Talk to the stores. Set volume targets. Provide knowledge about products - make several scenarios around pricing - predict a backdoor - ponder KPIs (if inventory is not achieved, margin contribution should compensate for it) - use marketing products and ads to promote

In the wise words of marketing guru Philip Kotler, "The art of marketing is the art of brand building. If you are not a brand, you are a commodity." Developing a category plan for a seasonal category is akin to building a brand that resonates with the changing rhythms of consumer demand. So, as you navigate the symphony of seasonal planning, remember Kotler's insight. Your category plan is not just about products; it's about creating a brand experience that transcends mere transactions, turning customers into loyal enthusiasts. 🌟🎵

I believe demand planning is a critical subject for seasonal categories which ensures availability when demand rises.Keeping excess FG during off season to meet demand in season , could lead to a slow down in Working capital. Margin becomes a talk of the topic to create win win situation across the ecosystem.

Category planning in offline markets for consumer brands works best if you divide the time into pre-season and during season to create dominance in the market. Pre-season is quarter before the season starts (taking an example of a RTD soft drink, ice-creams or beer brand here). Mobilise the teams to drive primary sales for your products during this time (distributors, stockists, and retailers). Plan incentives, joint marketing plans, visibility and relationships with your primary stakeholders in the retail value chain then. Start investing in brand awareness during this time. During season, execute your plans for POS visibility, consumer promos and shopper marketing while optimising your brand awareness to drive tertiary offtakes.