Is Category Captaincy still relevant?
Category Captain is a concept that was introduced in the 1980s and is a term commonly used in the retail industry to describe a strategic partnership between a retailer and a supplier.
In this blog post, we will explore what Category Captain means, how it works, the benefits it can bring to both parties involved and it's relevance to today's FMCG and CPG brands.
What is a Category Captain?
A Category Captain is a supplier or manufacturer that takes on a leadership role in a specific product category within a retail store. They work closely with the retailer to provide expertise, insights, and guidance on various aspects of the whole category, including range planning, merchandising strategies, and promotional activities.
How does Category Captain work?
The Category Captain collaborates with the retailer to analyse market trends, consumer behaviour, shopper activity and sales data to identify opportunities for growth and improvement that will benefit the category. They use their industry knowledge and expertise to develop strategies that will drive sales, increase customer satisfaction, and maximise profitability.
Once the strategies are agreed upon, the Category Captain works closely with the retailer to implement them. This may involve providing training to store employees, designing point of sale displays, optimising product placement or location in store, and recommending shopper marketing campaigns or initiatives.
What are the benefits of Category Captaincy?
Category Captaincy offers several benefits for both the retailer and the supplier:
1. Increased sales: By leveraging the Category Captain's expertise, retailers can optimise their product assortment and merchandising strategies, leading to increased sales and improved profitability.
2. Enhanced customer experience: The Category Captain helps retailers understand consumer preferences and trends, allowing them to offer a better shopping experience and meet the evolving needs of their customers.
3. Improved operational efficiency: Through collaboration with the Category Captain, retailers can streamline their operations, reduce costs, and improve inventory management, leading to higher efficiency and profitability.
4. Stronger supplier-retailer relationship: Category Captaincy fosters a closer partnership between the retailer and the supplier, based on trust, collaboration, and shared goals. This can lead to long-term strategic alliances and mutual success.
Category conclusions
Category Captaincy can be a valuable concept for both suppliers and retailers, bringing together the expertise of suppliers and the retail knowledge of store owners.
By working together, retailers and Category Captains can drive growth, improve customer satisfaction, and achieve their business objectives. It is a strategic partnership that benefits both parties and contributes to the overall success of the category and the retail store.
When is Category captaincy relevant?
Many brands aspire to be category captains but it usually requires significant investment on behalf of the supplier, both in terms of time and budgets to purchase category level data.
It works best for large brands who have a significant share of the category and will benefit the most from growing the category as their share will increase as a result.
For many brands, it is more realistic (and commercially viable) to act as category champions, focusing on what they know best, growing their brands whilst aiming to grow certain segments of the category or sub-categories.
Like to know more?
Please email or arrange a call if you'd like to know more about our category strategy methodology and how we support challenger food and drink brands to grow their sales and become category champions.