Category management involves organizing products into groups to better meet consumer needs and drive business results. It involves running each category as a mini-business unit with targets. The document discusses: 1) Defining categories, sub-categories, and brands within the scope of the business. 2) Spreading the total budget across categories, sub-categories, and brands. 3) Assessing category performance based on metrics like profitability, return on assets, and stock turnover to determine underperforming categories. 4) Developing strategies like adjusting supply, pricing, or promotions for underperforming categories to improve results.