Today, the pharmaceutical industry players are shifting towards innovations to compete with their counterparts in terms of stable growth, healthy margins, and retain their value in the market space. Leading pharmaceutical companies are devising the need for strategic category management solutions to increase their performance and ultimately reduce costs. Also, organizations are advocating the need for category management to identify and evaluate suppliers and prioritize actions to manage the marketing spend proactively. Furthermore, category management helps companies analyze the customer reach and devise effective strategies to develop a global consumer marketing strategy.
With years of expertise in offering a plethora of services, SpendEdge’s category management solution helps businesses evaluate the current state of their purchasing practice. Also, the client can further source goods and services, select suppliers, and understand internal stakeholder activities and requirements with the help of category management. Also, SpendEdge’s procurement solutions assist clients to accurately monitor market and supplier development and develop proactive market strategies.
What is category management?
Category management is a strategic approach used in retail and consumer-packaged goods (CPG) industries to effectively manage and organize products within specific categories based on customer preferences, market trends, and other relevant factors. It involves analyzing and optimizing various aspects of product assortment, pricing, placement, promotion, and overall strategy to drive business growth and enhance customer satisfaction.
The Procurement Pain Point and Insights Offered
A renowned pharmaceutical company was facing predicaments in developing effective strategic sourcing solutions. The client wanted to understand the price trends and fluctuations prevailing in the pharmaceutical space. Also, the client wanted to understand the latest trends and opportunities and gain an accurate price forecast for the products offered.
To understand the latest development in the market space, the client approached SpendEdge’s team of category management experts. The team of experts at SpendEdge carried out extensive research comprising interviews and discussions with leading stakeholders in the pharma industry. Also, the team further compiled information across various proprietary sources such as paid industry databases, company presentations, and newsletters.
By taking into account various factors influencing the growth of the pharmaceutical industry, SpendEdge’s category management solution helped the client identify the new products and service launches in the pharma industry. The solution further helped the client accurately forecast pricing trends and understand their potential impact on costs of material sourcing.
Key questions answered in this category management include
With the help of this category management solution, the client was able to focus on strategic category initiatives and ensure improved stakeholder management. The client was further able to implement an effective category strategy and manage category risks and supplier relationships better.
Why invest resources in category management?
Improved Customer Experience: Effective category management helps businesses tailor their product offerings to meet the specific needs and preferences of their target customers. By organizing products in a logical and customer-centric manner, businesses can enhance the shopping experience and make it easier for customers to find what they’re looking for.
Increased Sales and Revenue: Properly managed categories can lead to increased sales. By understanding customer preferences and optimizing the assortment, pricing, and placement of products, businesses can encourage larger purchases, cross-selling, and upselling opportunities.
Optimized Inventory and Supply Chain: Category management ensures that inventory levels are aligned with customer demand. This prevents overstocking and understocking issues, which can lead to cost inefficiencies and missed sales opportunities.
Effective Promotions and Marketing: A well-organized category structure allows businesses to plan and execute targeted promotions and marketing campaigns. This can lead to higher customer engagement and more effective use of promotional resources.
Data-Driven Decision Making: Category management relies on data analysis to understand customer behavior, market trends, and product performance. This data-driven approach enables businesses to make informed decisions about product assortment, pricing, and inventory management.