Beyond that, this type of category role also includes in-depth analysis. How the planograms look, which displays and promotions drive the most sales, and which products are most desirable for consumers. For some, it’s all about procurement: purchasing the right products and services for that category that will generate the most sales and profit for the business.įor others, it’s also about the category on the shelf. How a company approaches this strategic concept really depends on the organization in question. They can launch new promotions, planograms, and much more across a single business unit. Furthermore, management can make changes at the category-level.
In grocery, for example, most stores are organized by category (dairy, produce, meat, and more) which makes it easy to navigate stores and find specific products. That can simplify negotiations with suppliers and save the business time and money.Ĭategory management can also be used to improve the customer experience. This can centralize procurement under one person or team. What does category management look like in real life? This concept gives category managers multiple options to solve retail challenges.įor starters, an organization can procure goods on a category level, not a product, brand, or store level. For instance, this approach can help retailers lift profits on similar products in multiple ways, including by organizing procurement efforts under a single category instead of by individual brand or supplier.Ĭategory management is the process of bundling like products into a singular category, or business unit, and then addressing procurement, merchandising, sales, and other retail efforts on the category as a whole. In general, category management is the process of bundling like products into a singular category, or business unit, and then addressing procurement, merchandising, sales, and other retail efforts on the category as a whole.Ī central idea behind this strategy is to emphasize the benefits of the category for the consumer and remove inefficiencies and unprofitable competition among brands and suppliers within a category. Category Management Definitionįirst of all, what is category management? This is one of the harder retail concepts to define, as category management can mean different things to different people. In reality, there is much more to category management. As we all know, this isn’t as simple as it sounds. At a broad level, category management is simple: to improve the customer experience, drive efficiencies for businesses, and deliver quality products and services that generate profits.
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