BLOG

8 Simple Steps That Will Help You Master Category Management

Feb 15, 2018

Category management is a common term familiar to players in the retail industry. In fact, it is an essential factor for retailers to not only manage clusters of items within a shop environment but also a way for companies to buy more efficiently and save significant sums of money during procurement. At a basic level, category management deals with bundling items. Buyers examine items purchased across the company and consolidate different agreements into a single contract and price. A category primarily refers to any group of similar products, which the company wishes to buy under a single deal. The management part here is all about applying procurement methodologies to ensure that the company reduces cost and maximizes savings. We discloseSE_Demo2 eight crucial steps that will help businesses in the retail industry to become masters in category management:

1: Define the category

It is vital for retailers to have a clear understanding of their business, their customers and the consumers who buy your brand. The business’s ability to gain in-depth knowledge of how customers shop the category helps them to define the category. The consumer decision tree identifies the choices and the order of decisions customers make when they shop a particular category of products. Understanding the role of complementary goods in influencing buyer decisions will also prove to be useful.

2: Category role

Role identifies the value of a particular category to the retailer. It defines the function the retailer wants the category to play in their store. For instance, a category can be used to attract customers to the store, increase store traffic, support routine shopping needs, be a destination for seasonal/occasional purchases, a one-stop-shop or convenience. Retailers may assign different roles to categories within their stores depending on the segment of customers they want to attract.

3: Performance appraisal

The next step in category management is to understand how a category performs across different outlets in the market, also in comparison to the competition. The parameters include pricing, promotion, placement, and product assortment assessment.

4: Preparing a category scorecard

In category management, a scorecard refers to the strategic allocation of activities to be performed to attain the category goals and objectives. It summarizes various observations and analysis to help develop goals and targets for the category. It also assesses the consumers’ buying habits.

5: Build category strategies

Strategies help to fine-tune the category to meet the objectives of the scorecard. Strategies are designed to help businesses in the retail industry grow market share, increase sales, increase foot traffic, improve gross margin, increase ROI, increase the basket size and ensure customer satisfaction.

 6: Implementing tactics

Tactics are activities that are implemented to ensure that the category strategy is achieved. It is essential for retailers to have a thorough understanding of their brands and correctly predict the tactics that would work well for each category.

7: Implement the plan

This is the step in category management that gives life to the strategies and tactics of retail industry players. The degree to which companies can implement the plan successfully decided the success rate of the business.

8: Performance review and assessment

The final step to be successful in category management is to measure, analyze, and review the results. This will help companies to measure the deviations and take timely corrective action.

 


To know more about how category management is useful in the retail industryGet More Info


[ess_grid alias=”Blog-studio” settings='{“max-entries”:”8″}’ special=’related’][/ess_grid]

Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars