This document discusses category management in retail. It defines category management as the process of grouping similar products into categories and managing procurement, merchandising, sales and other retail efforts at the category level rather than individual product level. The key benefits are increased sales and profits through better organization, planning and management of product categories. The main stages of category management are defining the category, assigning its role, developing a category plan, implementing the plan, and periodically reviewing the category's performance.

1. CATEGORY
MANAGEMENT
Presented By: Shaswat kumar
MBA 3rd 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
1. 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
3. 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.