ORLANDO -- Ralston Purina Co. plans to step up its commitment to category management in the next year.
Information technology will enable the company to make these strides, said Dave Straub, the company's project manager for category development-information services. Ralston began category management two years ago. "Although we have already completed several [multifunctional] team-training courses, more will be needed to fully develop our associates' skills for functioning in the new structure," he said. "Additionally, refinement of the category management process and P&L management will be necessary elements for future success within our organization."
Straub outlined Ralston's category management program and direction here at the 10th annual AUGI conference sponsored by Information Resources Inc., Chicago. Ralston views information technology as consisting of two separate parts: information and information technology, according to Straub, but with a definite relationship. "Understanding the consumer is of paramount importance to the category management process," he said. "It is the driving force behind our strategies and resulting action-plans or tactics. "As proud as we are of our consumer knowledge, though, we are equally proud of the strides we have made to provide superior technology to our teams. It is the singular goal of this technology to equip our associates with the most efficient and effective means to access
consumer and related business information," he said. Ralston still considers its category management work to be in a "development mode," he said. It's an "ongoing process and not a final destination." Ralston Purina Co., St. Louis, is the leading maker of branded dry and soft-moist pet foods in the United States. Its brands, including Dog Chow, Puppy Chow, Cat Chow and Tender Vittles, are largely merchandised in the store's Pet Needs category. "Because of this category's more recent and turbulent consumer and distributor dynamics," said Straub, "it has often been described as one of the key reasons category management was invented." Straub works in the department responsible for developing the core components of category management. The department also serves as a consulting agent for the field sales teams and their customers.
He said that when category management began at Ralston, "we were trained to perceive ourselves as category consultants vs. sales people, meaning we were coached to evaluate programs based on their impact on the total category vs. a single brand or vs. Ralston Purina alone. "Then came the organization structural changes, and primarily the start of our multifunctional teams. These teams have been in place for over a year now and I believe will be one of the necessary ingredients for any supplier wishing to successfully implement category management," he said. According to Straub, category management requires deeper involvement than the traditional buyer-seller relationship. "We seek involvement of personnel from both companies at all levels and covering various functional operations," he said. "You need to have patience with your development in this area. It is not easy to grow these kinds of true collaborative relationships, but it is important if you are to truly work as partners in managing your category."
The most important element of a successful program, he stressed, is top management commitment. "Without it, all of your triumphs will be short-lived; with it, all of the other strategic elements will fall almost by themselves into place."
