Office Depot, Microsoft Develop Category Management System

Category management systems don't always get high marks from product manufacturers because they often trade brand sizzle and excitement for a more level merchandising field. However, in the case of computer mice, keyboards and other input devices, Office Depot feels it is critical to make it easy for consumers to navigate the range of available options.Last year, the Delray Beach, Fla.-based retailer worked primarily with Microsoft Corp. to design a category management system that leads consumers through a simple decision-making process to select the right input device for their needs. The system was rolled out to 770 of the chain's 870 North American stores last fall."Our whole objective is making Office Depot a more compelling place to shop," says Jamie Columbus, buyer of input and power devices at Office Depot. "What we don't want is to have customers who are frustrated because they can't figure out their solution."The input device category in Office Depot includes more than 20 keyboards, mice and trackballs from Microsoft and category competitors Logitech and Belkin Components. While Microsoft helped spearhead the project's design, Columbus says the system was designed to be fair to all the manufacturers. Logitech and Belkin representatives were brought into meetings to offer their insights, and Columbus served as gatekeeper for the project."What I didn't want it to be is a Microsoft house," he says. "I wanted it to be fair across the board. I don't think we're pushing a vendor, we're pushing the category."To help consumers compare similar products and understand available technologies, the system initiates a logical decision-making process. Signs mounted above product shelves begin the process with simple, first-person questions such as "Which mouse is right for me?" The signs then instruct consumers to choose between subcategories of products -- mice versus trackballs, for example.Next, consumers are asked to choose between different feature sets, such as standard versus optical mice. Definitions for each different product category and technology are also provided for reference.Once consumers have decided which type of product and features they want, they compare similar products. Small mats under each product detail specific attributes with a series of bullet points. The mats are color coded to group similar product types. All optical mice use yellow highlight colors, for example. Blue shelf liners under the mats match the current Office Depot color scheme.Branding for each manufacturer is restricted to small company logos placed in the bottom right corner of each mat, a fact that initially alarmed at least one of the manufacturers."When we started the project, everyone here said 'We need more branding! We need more branding! Where can we put it?"' says Deanna Barrett, former marketing communications manager for Redmond, Wash.-based Microsoft. "But really, as we worked through the solution with Office Depot, that's not the best answer for the consumer. They need information, and they need to make comparisons to make an educated decision."As a result, each product mat is a consistent template that all participating manufacturers must follow. Removable adhesive on the back of each mat makes it easy for store managers to customize the planogram or introduce new products in the mix, says Barrett.Imageworks, Winston-Salem, N.C., produced all of the pieces for the shelves and will print updated mats as needed. Office Depot's store planning department produced the header signage. Each manufacturer paid a portion of the project's implementation costs based on the number of products they offer in Office Depot, says Barrett.Store managers like the system because it reduces the number of customer service requests by helping consumers to help themselves, Columbus says."It's been extremely successful, not only from a sales standpoint, but also from the response from my stores," he says. "They're saying it's really helped out customer service issues."While the aisle system doesn't allow for variation from the standard template, Columbus says Office Depot is still open to using vendor-supplied displays in other locations, especially to introduce breakthrough new technologies."Today we don't want to have a display totally take over the whole category management system," he says. "But if someone came out with a great new technology, we would definitely look at endcapping it."

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