Category Management Principles
For organizations to gain a winning edge in today’s competitive environment, it is important to implement key category management principles and place category management at the heart of their firm’s strategic business plan. This also means that organizations have to adopt a more strategic approach towards category management. Category management generally revolves around the following key principles:
- Strong supply market intelligence
- Cross-functional approach
- Stakeholder engagement
Category Management Process
Define the category: This is the most crucial step that offers detailed insights into each segment while determining the products that belong to the category.
Assess the role of each category: This helps to understand the role of the category in the retailer’s product portfolio.
Assess current performance: A detailed analysis of the category’s current performance.
Set targets for each category: Devise category scorecards to set measurable and achievable category goals.
Devise precise strategies: Develop precise in-store and marketing strategies for each category.
Set category tactics: Outline the measures to achieve the set category goals.
Implement the devised strategies: Implement the set strategies to ensure the category goals are met.
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