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ROLE OF CATEGORY MANAGEMENT & IT’S FUNTIONAL PLAY OVER THE
ORGANIASATION
category
A distinct, manageable group of products that
consumers perceive to be interrelated and/or
substitutable in meeting a consumer’s needs.
Category
Management
The distributor/supplier process of managing categories as
strategic business units, producing enhanced business results
by focusing on delivering consumer value.
Define Merchandise Categorywithin scope
ofbusiness:
Sub
Category
Brand
Mix
Gents a. Chappal General
b. Beach Sandal
c. Gents Hawaii
Shoe a. Formal,
b. Sports
c. Outdoor
Gents Chappal General British Walkers
Lazard
Softouch
Category
RETAILERMANUFACTURER
PRODUCT
MANAGEMENT
CATEGORY
MANAGEMENT
CUSTOMER
MANAGEMENT
CONSUMER
PRODUCT
MANAGEMENT
CUSTOMER
MANAGEMENT
CUSTOMER
RELATIONSHIP
MARKETING
PRODUCT/CUSTOMER MANAGEMENT:
A CONCEPTUALMODEL
EACH CATEGORY IS RUN AS A "MINI BUSINESS" (BUSINESS
UNIT) IN ITS OWN RIGHT, WITH ITS OWN SET OF TURNOVER
AND/OR PROFITABILITY TARGETS AND STRATEGIES.
HOW IT CAN WORK !!!
Total Budget FY 18-19
(in pair and value) Define by
Corporate
Ladies Kids
Acces
sories
ShoeGents GirlsBoys
Spread of Budget amount into different category
Chappal General
Beach Sandal
Hawai
Each of the sub category got fraction of budget
from its parent Category
British Walkers
Softouch
Lazard
Each Brand get a
Fraction budget
from its Sub
When Every Business unit (Retail Store ) get the yearly Budget as Target in
terms of volume and pair and the total volume and pair spread out into
different Category(Rack) , Sub Category (MC) and at last Brand .Estimate for
every category and sub-category performance are pre-determined and will set
at the first of the Financial year .
Category , subcategory and Brand wise estimate through spread by zone
wise> then state wise > then area wise > then single business unit (retail)
Figure of volume and pair are share to both for Operation team and Logistics
Team . It’s a operational target for operation team and souring target for
Logistics Team.
Maintain the optimum stock level for Warehouse and as well as
Store level for reach the predetermined budget.
Analysis the demanded price point, mean price point and its
standard deviation for each category ,and required stock to
maintain the demanded price point.
Easy accessible Return over Asset (ROA), Gross margin over space
(sq ft) (GMROS)
CATEGORY
ROLE & IMPORT
ANCE
CATEGORYASSESSMENT
• Profitability (Net Profit Margin , or net profit in
%,ROI)
ASSESSMENT
Particulars Shoe-British
Walkers
Shoe-Softouch Shoe-Lazard Shoe-Khadims
Grosssale 19,78,000
Returns
(Through RPL
and fresh
damage)
12,000
Tax (18%) 3,56,040
Net sales 16,09,960
Costof goods
sold
8,00,000
Grossmargin 8,09,960
Expenses
(cobbler )
1000
Net profit 8,08,960
Net profit in% 40.89
ASSET 10,00,000
ROA 1.978
particulars SHOE-BW SHOE-SFT SHOE-LZD SHOE-KD
Grossmargin 19,78,000 9,40,000 12,40,000 20,49,000
Space(sqft) 2,000 2,000 2,000 2000
GMROS 989 470 620 1024
B
SCORE
CARD
• Sell through analysis
• Stockturnover ratio
B
category (Maxi
mum
score
)
Shoe-
BW
Shoe-
SFT
Shoe-
LZD
Shoe-
Khadi
ms
GROSS
MARGIN
5 4
ROA 5 4
STOCK
HOLDING
DAYS
5 4
TOTAL 12
(GOOD
)
Self Assessment
STRATEGI
ES
Define the Category , Sub
Category for under
Performance . (Not
perform as per the
projected Budget)
Monitoring the problem
for under performance
Stock Problem,
Supply Problem, SKU
Problem, Pricing Problem,
Placement Problem.
Solution
Increase the better
supply , , Inter retail
stock transfer for better
ROA.
Define the Category , Sub
Category for Average
Performance .
To make the decision to
more improve it and get
the yellow status.
Red (Under Performer) Green (Average) Yellow(Good )
.
Monitoring the scope for
increase the price point
further .
Search the more supply
to get a more sale
Define the Category ,
Sub Category for good
Performance .
Monitoring the scope for
increase the price point
further .
Search the more supply
to get a more sale
Shoe-British
walkers
Good
(Yellow
Signal)
Sku Variety
ok
ok
Sku Style
Category Status
price range
starting from
2499 to 3799
INR
ok
Price Point
ok
ok
Supply
Pricing
Shelf
placement
ok
Any Other
NA
Stock
CATEGORY
TACTICS(TACTOGRAM)
IMPLEMENTATION
We will implement in out strategy in category choosing
Planogram will be developed on the basis of the cluster we have
identified
Requirement Level for a single SKU under a Category or
sub-category (called NORMs) has to be Half-Centralized ,
means during budget preparation when supply for each
category are predetermined for a particular area/zone ,
then from the side of a business unit(store) has restricted
pair norms for each category and sku and it may be 30 %
or 40% higher than the budgeted pair .
And then only this model will get successful.
PROMOTIONAL STRATEGIES
For Under Performer Category/Sub –Category
,SKU from one store can be transfer from one
business location to other business location to
get a better performance.
To fall under Discount for Non-Performing
SKU for the respective Category.
THANK YOU

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Category & scope of implimentation within organisation

  • 1. ROLE OF CATEGORY MANAGEMENT & IT’S FUNTIONAL PLAY OVER THE ORGANIASATION
  • 2. category A distinct, manageable group of products that consumers perceive to be interrelated and/or substitutable in meeting a consumer’s needs. Category Management The distributor/supplier process of managing categories as strategic business units, producing enhanced business results by focusing on delivering consumer value.
  • 3. Define Merchandise Categorywithin scope ofbusiness: Sub Category Brand Mix Gents a. Chappal General b. Beach Sandal c. Gents Hawaii Shoe a. Formal, b. Sports c. Outdoor Gents Chappal General British Walkers Lazard Softouch Category
  • 5. EACH CATEGORY IS RUN AS A "MINI BUSINESS" (BUSINESS UNIT) IN ITS OWN RIGHT, WITH ITS OWN SET OF TURNOVER AND/OR PROFITABILITY TARGETS AND STRATEGIES.
  • 6. HOW IT CAN WORK !!! Total Budget FY 18-19 (in pair and value) Define by Corporate Ladies Kids Acces sories ShoeGents GirlsBoys Spread of Budget amount into different category Chappal General Beach Sandal Hawai Each of the sub category got fraction of budget from its parent Category British Walkers Softouch Lazard Each Brand get a Fraction budget from its Sub
  • 7. When Every Business unit (Retail Store ) get the yearly Budget as Target in terms of volume and pair and the total volume and pair spread out into different Category(Rack) , Sub Category (MC) and at last Brand .Estimate for every category and sub-category performance are pre-determined and will set at the first of the Financial year . Category , subcategory and Brand wise estimate through spread by zone wise> then state wise > then area wise > then single business unit (retail) Figure of volume and pair are share to both for Operation team and Logistics Team . It’s a operational target for operation team and souring target for Logistics Team.
  • 8.
  • 9. Maintain the optimum stock level for Warehouse and as well as Store level for reach the predetermined budget. Analysis the demanded price point, mean price point and its standard deviation for each category ,and required stock to maintain the demanded price point. Easy accessible Return over Asset (ROA), Gross margin over space (sq ft) (GMROS) CATEGORY ROLE & IMPORT ANCE
  • 10. CATEGORYASSESSMENT • Profitability (Net Profit Margin , or net profit in %,ROI)
  • 11. ASSESSMENT Particulars Shoe-British Walkers Shoe-Softouch Shoe-Lazard Shoe-Khadims Grosssale 19,78,000 Returns (Through RPL and fresh damage) 12,000 Tax (18%) 3,56,040 Net sales 16,09,960 Costof goods sold 8,00,000 Grossmargin 8,09,960 Expenses (cobbler ) 1000 Net profit 8,08,960 Net profit in% 40.89 ASSET 10,00,000 ROA 1.978
  • 12. particulars SHOE-BW SHOE-SFT SHOE-LZD SHOE-KD Grossmargin 19,78,000 9,40,000 12,40,000 20,49,000 Space(sqft) 2,000 2,000 2,000 2000 GMROS 989 470 620 1024 B
  • 13. SCORE CARD • Sell through analysis • Stockturnover ratio B category (Maxi mum score ) Shoe- BW Shoe- SFT Shoe- LZD Shoe- Khadi ms GROSS MARGIN 5 4 ROA 5 4 STOCK HOLDING DAYS 5 4 TOTAL 12 (GOOD ) Self Assessment
  • 14. STRATEGI ES Define the Category , Sub Category for under Performance . (Not perform as per the projected Budget) Monitoring the problem for under performance Stock Problem, Supply Problem, SKU Problem, Pricing Problem, Placement Problem. Solution Increase the better supply , , Inter retail stock transfer for better ROA. Define the Category , Sub Category for Average Performance . To make the decision to more improve it and get the yellow status. Red (Under Performer) Green (Average) Yellow(Good ) . Monitoring the scope for increase the price point further . Search the more supply to get a more sale Define the Category , Sub Category for good Performance . Monitoring the scope for increase the price point further . Search the more supply to get a more sale
  • 15. Shoe-British walkers Good (Yellow Signal) Sku Variety ok ok Sku Style Category Status price range starting from 2499 to 3799 INR ok Price Point ok ok Supply Pricing Shelf placement ok Any Other NA Stock CATEGORY TACTICS(TACTOGRAM)
  • 16. IMPLEMENTATION We will implement in out strategy in category choosing Planogram will be developed on the basis of the cluster we have identified Requirement Level for a single SKU under a Category or sub-category (called NORMs) has to be Half-Centralized , means during budget preparation when supply for each category are predetermined for a particular area/zone , then from the side of a business unit(store) has restricted pair norms for each category and sku and it may be 30 % or 40% higher than the budgeted pair . And then only this model will get successful.
  • 17. PROMOTIONAL STRATEGIES For Under Performer Category/Sub –Category ,SKU from one store can be transfer from one business location to other business location to get a better performance. To fall under Discount for Non-Performing SKU for the respective Category.