Activity 10
Data gathering
Overview
Data gathering is an essential part of category analysis and strategy development. The data-gathering action plan can facilitate the collection of category information, such as the number of players in a market and the supply-market dynamics. The data can be either qualitative or quantitative, but crucially data must be accurate and robust.
Data-gathering action plans can be developed in consultation with the category team or in isolation. Best practice supports a team approach, as it is thought that specialist knowledge held by individual members is more easily identified and accessed, leading to more efficient use of available project resources.
Elements
The idea of establishing a plan around data-gathering activities is to ensure that ownership is ascribed and therefore accompanying action will result.
Data can be derived from a plethora of sources and may be classified as either primary or secondary in the first instance. Primary data refers to that which are researched and sourced directly by the user, such as an interview with a supplier, as opposed to secondary data, which are obtained indirectly through third-party sources, such as magazines, published indices and so on. The data can be further subdivided into qualitative or quantitative and so on.
It should be remembered that there is a difference between data and information, and so further analysis and interpretation is often required to help make the data useful. A typical data-gathering action plan would pose a number of searching questions as outlined in Figure 2.9 (in which a corresponding example is also given).
So what?
Many take the practice of data gathering for granted and assume it is an ‘administrative’ or ‘junior’ task associated with or allocated to an ‘analyst’. However, the quality and depth of the data are critical inputs into the category management process, and therefore data gathering requires a forensic and experienced perspective. Care should be taken in ascertaining the most suitable ‘owner’ for each of the data-gathering activities identified.
Reliable and applicable data will help to build an effective category strategy plan and highlight opportunities to leverage value and business benefits. Therefore, data need to be collated in a timely manner, as well as be accurate, reliable and appropriate.
Category management application
- Forms the basis for category analysis and the category strategy plan
- Makes ownership of data-gathering tasks clearly visible to the category team
- Provides momentum for the category team through the action plan framework
- Is a how, what, when, where, why approach to category data collection
Limitations
The usefulness of the data collected is reliant upon the structure and the expertise of those assembling it. ‘Garbage in, garbage out’ is a common feature of a laissez-faire approach to this discipline. The data should also be continually assessed, as out-of-date material can be an issue and have a knock-on impact, but regrettably once the category management programme is in flow, this undertaking may be overlooked.
Although the information gleaned from the data-gathering process forms the bedrock of the category plan, as stated earlier, this task can be viewed as a routine or transactional activity by some. Unfortunately, as a result, data gathering can be afforded less priority and focus by expeditious category managers. This leads to less effort given to interpreting data and consequently less value being derived.
Template
The following template can be used to support category management data-gathering activities:
- Template 10: Data-gathering action plan