Value creation in category management relationships in the UK grocery market BENSON, Michael Christopher Available from the Sheffield Hallam University Research Archive (SHURA) at: http://shura.shu.ac.uk/27678/ A Sheffield Hallam University thesis This thesis is protected by copyright which belongs to the author. The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the author. When referring to this work, full bibliographic details including the author, title, awarding institution and date of the thesis must be given. Please visit http://shura.shu.ac.uk/27678/ and http://shura.shu.ac.uk/information.html for further details about copyright and re-use permissions. Value Creation in Category Management Relationships in the UK Grocery Market Michael Christopher Benson A thesis submitted in partial fulfilment of the requirements of Sheffield Hallam University for the degree of Doctor in Business Administration Sheffield Hallam University March 2020 Candidate Declaration I hereby declare that: 1. I have not been enrolled for another award of the University, or other academic or professional organisation, whilst undertaking my research degree. 2. None of the material contained in the thesis has been used in any other submission for an academic award. 3. I am aware of and understand the University's policy on plagiarism and certify that this thesis is my own work. The use of all published or other sources of material consulted have been properly and fully acknowledged. 4. The work undertaken towards the thesis has been conducted in accordance with the SHU Principles of Integrity in Research and the SHU Research Ethics Policy. 5. The word count of the thesis is 79,727 words (ex-tables, lists, references, appendix, reflections) Name Michael Christopher Benson Award Doctor in Business Administration Date of Submission 05 March 2020 Faculty College of Business Technology and Engineering - SBS Director(s) of Studies Dr. Craig Hirst Word Count Gross Word Count 119,548 Less: Abstract & Openers 2,156 Tables & Charts 5,771 Personal Reflection 2,155 References 9,412 Appendix 14,973 Net Word Count 85,081 i Abstract This thesis explores the nature of value, and value co-creation within the context of collaborative category management relationships in the UK grocery sector. Category management is the process which involves a collaboration between food manufacturers (suppliers) and retailers to manage the needs of shoppers. Research into category management is very timely as the retailing industry is currently facing one of its greatest challenges. Shoppers are becoming more demanding and expect better value from their purchases. The research reveals that shoppers are switching from branded to private label products following on from the recent success of Discounters. This has created opportunities for all category suppliers including private label and smaller niche suppliers, if they produce retailer specific innovative and creative ideas. It was also found that the role of the category captain was abandoned five years ago, despite being the focus of the category management literature even today. The role now known as ‘preferred supplier’ is available to any category supplier and is no longer the exclusive right of the largest branded supplier. The current research study has involved UK based food industry supplier category managers and retail buyers, to understand if category management collaborations created value. Following a phenomenological approach using long qualitative interviews, the findings were controversial in that both the suppliers and retailers were not completely satisfied with the category management relationship, and that value was not always created. This finding contradicts existing research, and indeed the rhetoric that normally purveys in practice. The researcher anticipates that the thesis will alert practitioners to the underlying issues that exist and encourage them to find ways of working closer together, without fear of displeasing the other partner. It will no doubt spark reformist debates between suppliers and retailers, as well as update the category management literature. The research findings move the category management conversation forward from an objective to a subjective explanation of value creation. Finally, it introduces the importance of Service-Dominant Logic S-DL in creating value through the lens of the five axioms of S-DL. It also adds further insight from a supplier’s perspective based on confidential testaments of practitioners on the front-line. ii Acknowledgements I express my deepest thanks to my Director of Studies Dr Craig Hirst and supervisor Professor Peter Schofield for their help and support throughout this research project. Most people see me as being calm and relaxed, but my team have experienced the high energy, never wrong, and emotional aspects of my personality. The supervisory team recognised this early on and quickly found the right way to handle the situation and keep me focused and equitable. I am also extremely grateful to the SBS for sponsoring me, and the teaching team for their expert help and advice. I would like to convey my sincerest thanks to all the participants of the study. They all lead incredibly busy lives and by taking time away from their work commitments to contribute to my thesis and moving category management research forward has been a real game changer. I dedicate this thesis to the memory of my father, Mr Thomas Richard Benson. I was privileged to have had the opportunity to work alongside him within the family butcher’s business and learned not only how to cut and present meat, but also the value of business relationships and the importance of hard work and a positive approach. He always believed in me, and he was not objective when I chose to leave the family business and pursue my career in a different direction. He would be proud to know that I have progressed from 'Butcher' to 'Doctor', and I am confident that his memory has helped me through this treacherous journey. I also dedicate this thesis to the memory of Mr Michael W. Taylor; a friend taken away at a young age who was also committed to self- development and learning. He too was always at my side, supporting me during difficult times. I would also like to thank my mother, Mrs Barbara Benson, who is aware of my real personality and has always been there for me even during difficult times. Thanks to my brother, Mr Stephen Richard Benson, who has always been at my side as a brother and as a partner in the family business. Having different personalities has always worked in our favour in business and personal situations, and this support has continued throughout my DBA. Thank you to all the members of my family who have supported me in various ways both at home and with the business. Finally, thank you to my daughter, Miss Emily Elizabeth Benson, for her kind words of support throughout the DBA journey when I complained things were getting tough. I hope that my Doctorate will act as an inspiration to her in the future. iii Table of Contents Candidate Declaration ............................................................................................... i Abstract .................................................................................................................... ii Acknowledgements .................................................................................................. iii Table of Contents..................................................................................................... iv List of Tables ........................................................................................................... ix List of Figures ........................................................................................................... x Page .......................................................................................................................... x List of Abbreviations ............................................................................................... xi Chapter 1: Introduction ........................................................................................... 1 1.1 Background .................................................................................................. 1 1.2 Passion for the Thesis and Research Gap ....................................................... 2 1.2.1 Academic Gap ....................................................................................... 4 1.2.2 Practice Gap .......................................................................................... 4 1.2.3 Research Gap ........................................................................................ 5 1.3 Research Aim ............................................................................................... 5 1.3.1 Primary Research Question .................................................................... 6 1.4 Research Objectives...................................................................................... 6 1.4.1 Objective 1 ............................................................................................ 6 1.4.2 Objective 2 ............................................................................................ 7 1.4.3 Objective 3 ............................................................................................ 7 1.5 Research Contribution..................................................................................