Kellogg Simplifies Category Management for Target

As category manager for several categories, the Kellogg Company Target Team (www.kelloggcompany.com) spent more time extracting data than developing strategies to drive category growth. Further, Target evolved its category reporting needs, requesting succinct summaries that illustrate key insights. The team required a demand intelligence solution that would import and process demand data and then generate concise fact-based reports that would demonstrate how retailers can grow category sales volume. In 2009, Kellogg implemented SOLYS demand planning software from Lumidata (www.lumidata.com) to do just that. Now, users save two to four hours a week using SOLYS to pull reports.

"SOLYS has reduced data extraction time by up to 50 percent," says Melissa Loar, senior manager, Category Management, Kellogg Company. "Now my team spends the majority of its time fleshing out insights and developing strategies that help Target grow category volume.

Further efficiencies result from the ability to create custom item groups that align with internal item and category attributes. Users spend just minutes pulling reports and more time bulleting insights for presentation to the buyer. Kellogg can also better identify category growth drivers and trends for Target. For example, Kellogg showed that consumers would continue shopping as they did during the recession in the fourth quarter of 2009. Finally, Kellogg helped Target improve category sales utilizing reports that demonstrate promotional effectiveness. With these reports, Target buyers can determine whether to repeat or improve a promotion, or replicate best practices in other categories. 

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FAST FACTS 

Company at a Glance
With brands like Cheez-It, Keebler and Frosted Mini-Wheats, and sales of nearly $13 billion, Kellogg Company is the world's leading producer of cereal and a leading producer of convenience foods. 

Beyond Category Management
The Kellogg Target Sales Team also utilizes SOLYS to identify in-stock issues. A "Lost Sales Report" is shared with the Target buyer to illustrate where sales are falling short and to determine what steps can be taken to improve upcoming promotions.