Category Decision Tree One of the critical elements of the CatMan2.0 process is the Category Definition and the Category Decision Tree step. The purpose of this step is to agree which items are within the category and to outline and define the Category Decision Tree (CDT). The CDT is a graphical record that assists retailers to better understand consumer buying habits, and the decision-making processes followed by individuals while shopping a category.
Happy Friday from the Label Insight team!! This post kicks off a regular series to capture and curate category management2.0 news that we find relevant to the future of attribute driven category management. ConfectionaryNews.com: Whole Foods campaigns for six emerging brands that rival traditional candies and snacks Whole Foods kicked off a campaign across the US earlier this month to promote six emerging candy and snack brands that offer healthy alternatives, such as KitKat. Label Insight comment: We found this one interesting because it directly relates to what an attribute driven market will look like going forward.
Shoppers in today’s marketplace demand convenience, personalization, and transparency. They want the products they desire, at the time they want it, and for the right cost. Shoppers are more knowledgeable than ever before about their purchases. They research online and have a complete understanding of the price, in-stock conditions, and materials that make up their desired product.
Growth in High-Order Attributes Studies indicate shoppers are rewarding transparency. Seventy-four percent of shoppers claims they would switch to a more transparent brand (FMI & Label Insight - The Transparency Imperative). As evidence, brands with digital SmartLabel pages that enable digital labeling transparency have grown by 10.7% over the last 52 weeks in a number of categories that are either flat or declining. “Most major brands and retailers are losing share, volume, or margins, sometimes all three.” Gordon Wade, CatMan + Transparency
Transparency is here to stay. Recently the FMI & Label Insight Transparency Imperative report stated that over 86% of shoppers are more likely to trust a brand or retailer who provides complete and easy-to-understand definitions for all ingredients. And the same study demonstrated that 74% of shoppers would be willing to switch to another brand that provided more information – a 90% increase from 39% in 2016.