Category management

category management

1. CATEGORY MANAGEMENT Presented By: Shaswat kumar MBA 3 rd semester Product and Brand Management

2. Index Understand the meaning of category Management List the key categories in retail Understand the benefits of category management Understand the process of category management Conclusion

3. Category Category is an assortment of items which the consumer may perceive as substitute for each other. Goods are categorized on the basis of similarities in consumer tastes, preferences, liking and disliking such as Junk food, Bar-be-Que, Razors, burgers, baked confectionary, sweets, etc.

4. What is category management ? The total range of products sold by a retailer is broken down into group of similar related products. These groups are known as product category. Example of products categories may be skin care, baby care, shoe care, apparels etc . Category Management is the process of bundling group of similar products in to singular category or Business unit, and then addressing procurement, merchandising, sales and other retail efforts on the Category as a whole.

5. Key Categories Food Apparel Furniture and Furnishings Homes Appliances Mobile and Consumer Electronic Appliances Some specialized Categories Pharmacy Music Books Toys

6. Why it is important ? A 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. For instance this approach can help retailers to lift their profits on similar products in multiple ways, Including by organizing procurement efforts Under single category instead of by individual brand or Supplier.

7. Benefits of Category Management Increased sales due to: Better shelf sets and product mix to meet consumer demand More effective promotions on critical items Better in-stock levels throughout seasonal swings Better price image and sustainability 2. Improved profit margins because of: More effective pricing through "real consumer value" models More effective and efficient promotional scheduling Lower replenishment costs of inventory and materials.

8. Benefits of Category Management Better vendor relations, including: Increased sharing of information improved alignment of marketing programs Symbiosis and coordination of consumer efforts 4. Enhanced competitive position leading to: Increased market share market Improved positioning Sustainable customer loyalty Greater consumer evangelism A model impervious to competitive attack Longer business life

9. Category Management Processes

10. Category Management Processes Define Category Define Category Role Category Planning Implementation of Plan Category Review

11. Define Category Category should be established by the way consumers buy it. Usually products in a category are :- Reasonable substitutes for one another. Or Complement each other. Or Have similar use. For example, categories in a food store may be Staples, Ready to eat, Ready to cook Categories in an apparel store may be Casual wear, Formal wear, Party wear

12. Define Category Role This stage involves developing and assigning a role for the category, based on a cross category comparison considering consumer, market and retailer information. A retail should define the purpose for stocking a particular category ✓ Is it a crowd puller? - The reason why most people visit the store. ✓ Does it compliment the crowd puller range? ✓ Is it the margin provider?

13. Category Planning In this stage, the retailer needs to answer the following questions What categories do we need to hold? What role will it play?. What will the associated categories be? What is the width and depth of merchandise in that category, that we will hold ? How much floor space/ Capital do we need to allocate to each category.

14. Implementation of Plan This stage involves implementation of category business plan through a specific schedule and list of responsibilities. Assign responsibilities for category management implementation, within both retailer and supply partner organizations.

15. Category Review The final stage involves measuring, monitoring and modifying category business plan on a periodic basis.