Authors: Dr. Brian Harris, Luc Demeulenaere, Julie Beck
The CPG and retail grocery industry is at a pivotal moment, facing unprecedented challenges. The Category Management process, largely unchanged for over 30 years, has provided a sound platform for retailers and suppliers to address the dynamic changes that have occurred. But given the speed and scope of today’s challenges it is no longer sufficient to deliver breakthrough, sustainable results. Despite advances in technology and data availability, the industry’s traditional frameworks fail to address the complexities of today’s shopper journey—one that demands personalization, convenience, and seamless omnichannel experiences.
This disconnect calls for a transformative approach. We call it Personalized Consumer Response (PCR). It represents the evolution of Efficient Consumer Response (ECR) and Category Management, bridging the gap between legacy processes and the modern retail landscape. By leveraging artificial intelligence (AI) and advanced analytics in an updated and expanded Category Management business process, PCR enables retailers and manufacturers to anticipate consumer, and shopper needs and align strategies in real time, creating a more future focused and effective collaboration model.
This white paper introduces the PCR concept and the next-generation Category Management process that will drive PCR to unlock new levels of innovation and profitability. By embracing this updated more strategic approach, the industry can break free from reactive decision-making and fully capitalize on the opportunities presented by today’s rapidly evolving consumer and shopper behaviors.