Retail Assortment Planning Under Category Captainship

Kurtuluş, Mümin; Nakkaş, Alper

doi:10.2139/ssrn.1533966

Cited by 4 publications

(9 citation statements)

References 15 publications

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“…Kurtuluş and Nakkas, 2011). In the short term, this risk is relatively small since the existing offers from competing suppliers are still substitutable.…”

Section: High Abilitymentioning

confidence: 99%

“…Assortment and its connection to power has received attention in literature about category captainship, where the control over assortment selection is discussed (Kurtuluş and Nakkas, 2011). Assortment management based on collaboration between suppliers and retailers has also been studied in literature about efficient consumer response (ECR), vendor managed inventories (VMI) and collaborative category management (e.g.…”

Section: Introductionmentioning

confidence: 99%

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Power in distribution channels — Supplier assortment strategy for balancing power

Rehme

Nordigården

Ellström

et al. 2016

Industrial Marketing Management

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“…Kurtuluş and Nakkas, 2011). In the short term, this risk is relatively small since the existing offers from competing suppliers are still substitutable.…”

Section: High Abilitymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Power in distribution channels — Supplier assortment strategy for balancing power

Rehme

Nordigården

Ellström

et al. 2016

Industrial Marketing Management

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“…This field of research is mainly comprised of quantitative studies, often in operations management, which aim to identify optimal assortments for retailers (e.g. Campo and Gijsbrechts, 2005;Ton and Raman, 2010;Kurtuluş and Nakkas, 2011). Much effort is put into determining optimal assortments before determining what subjects are related to assortment management, and how assortment management can be understood.…”

Section: Finding a Relevant Subjectmentioning

confidence: 99%

Supplier Integration in Category Management : A case study of the situational impact on relationship performance and interdependence

Ellström¹

2015

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Supplier integration in category management means that a supplier takes part in the activities that are traditionally performed by retailers. These activities are the selection of which products to sell, decisions on how to price and market the products, and making sure that the products are delivered to the stores in a timely manner. Depending on the situation, an integration of suppliers in these activities can be more or less suitable.As more research is needed to understand when supplier integration in category management is suitable, the purpose of this thesis is to describe and analyze how situational factors affect the relationship consequences of supplier integration in category management. Specifically, the relationship consequences are expressed in terms of relationship performance and interdependence between the firms.The study builds on empirical data about British and Swedish builders' merchants and their suppliers, with a particular focus on timber suppliers. Data has mainly been collected through participative observations and interviews.Five situational factors that improve the relationship performance of supplier integration in category management are identified: large retailer firms, supplier product knowledge, homogeneity of market demands for the supplier's products, mutual trust and a shared view on customer value between the supplier and retailer. Three situational factors are identified that affect the interdependence between the retailer and the supplier when supplier integration in category management is implemented: supplier product knowledge, whether the supplier or the retailer initiates the integration and whether coercive or non-coercive power has to be used in the implementation.This thesis contributes to retail literature by highlighting the need to include situational factors in the analysis of supplier integration, clarifying which activities are comprised by category management and suggesting a theoretical foundation based on the resource-based view and the transaction cost framework to analyse relationship performance in retailer-supplier dyads. When making decisions on integration, managers of retailers and their suppliers are advised to consider the fit with their overall strategy, the fit with the surrounding situation and the effects both in terms of interdependence and relationship performance. LEVERANTÖRSSAMARBETE I HANDELNHandelns uppgift är att ge allmänheten tillgång till rätt produkter, för rätt pris, på rätt plats och dessutom att informera sina kunder om värdet av dessa produkter. De handelsföretag som lyckas bättre med detta än sina konkurrenter är de som långsiktigt kommer överleva. För att utföra denna uppgift kan handeln ta hjälp av sina leverantörer. Detta kallas för leverantörsintegration. Eftersom leverantörerna ofta har mer kunskap om sina egna produkter och den nytta deras produkter bidrar med, kan leverantörerna spela en viktig roll i handelns arbete med sina produktkategorier.Att ta hjälp av leverantörer innebär dock inte alltid en förbättring fö...

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“…First, we establish that with centralized management under brand-primary model, 1 It is possible that one of the brands is the category captain, which may lead to possible conflicts of interest (Kurtuluş and Nakkas 2011). The objective of the category captain is usually to meet category performance targets, which include category profits.…”

Section: Introductionmentioning

confidence: 99%

Optimal and Competitive Assortments with Endogenous Pricing Under Hierarchical Consumer Choice Models

Kok

2011

Management Science

122

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This paper studies assortment planning and pricing for a product category with heterogeneous product types from two brands. We model consumer choice using the nested multinomial logit framework with two different hierarchical structures: a brand-primary model in which consumers choose a brand first, then a product type in the chosen brand, and a type-primary model in which consumers choose a product type first, then a brand within that product type. We consider a centralized regime that finds the optimal solution for the whole category and a decentralized regime that finds a competitive equilibrium between two brands. We find that optimal and competitive assortments and prices have quite distinctive properties across different models. Specifically, with the brand-primary model, both the optimal and the competitive assortments for each brand consist of the most popular product types from the brand. With the type-primary choice model, the optimal and the competitive assortments for each brand may not always consist of the most popular product types of the brand. Instead, the overall assortment in the category consists of a set of most popular product types. The price of a product under the centralized regime can be characterized by a sum of a markup that is constant across all products and brands, its procurement cost, and its marginal operational cost, implying a lower price for more popular products. The markup may be different for each brand and product type under the decentralized regime, implying a higher price for brands with a larger market share. These properties of the assortments and prices can be used as effective guidelines for managers to identify and price the best assortments and to rule out nonoptimal assortments. Our results suggest that to offer the right set of products and prices, category and/or brand managers should create an assortment planning process that is aligned with the hierarchical choice process consumers commonly follow to make purchasing decisions. This paper was accepted by Pradeep Chintagunta and Preyas Desai, special issue editors. This paper was accepted by Pradeep Chintagunta and Preyas Desai, special issue editors.assortment planning, product variety, category management, pricing, inventory costs, nested multinomial logit model

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Retail Assortment Planning Under Category Captainship

Cited by 4 publications

References 15 publications

Power in distribution channels — Supplier assortment strategy for balancing power

Power in distribution channels — Supplier assortment strategy for balancing power

Supplier Integration in Category Management : A case study of the situational impact on relationship performance and interdependence

Optimal and Competitive Assortments with Endogenous Pricing Under Hierarchical Consumer Choice Models

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