For any business product categorization is very important. Through market survey and research on can identify the demand or availability of a particular product in the market. Accordingly the pricing strategy, the production planning, the distribution planning have been done. Every products lifecycle depends on the demand of common people in the market. If a product is in high demand and the availability or supply of that particular product or the supplementary product is insufficient in the market the price can be increased. So to run a business successfully the market survey and research is very important.

1. CATEGORY MANAGEMENT
Definition, need and Importance
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2. Category
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 A Category is a group of similar or related items
which the customer would ideally like to find
together in a store
 Categories are mainly used as organizational aids
to better manage and monitor predefined groups of
products

3. Category Management
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 Category management is a retailing and purchasing
concept in which the range of products purchased by
a business organization or sold by a retailer is broken
down into discrete groups of similar or related
products
 It is a systematic, disciplined approach to managing
a product category as a strategic business unit

4. Category Management- Definition
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 Category management is a process that involves
managing product categories as business units and
customizing them [on a store by store basis] to satisfy
customer needs- Nielsen
 The strategic management of product groups through
trade partnerships which aims to maximize sales and
profit by satisfying consumer and shopper needs-
Institute of Grocery Distribution

5. Significance of Category Management
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 Increased sales, goodwill and market share
 Proper care and devotion to each item of
merchandise
 Increased sales further lead to increased turnover
 Maximize shelf efficiencies
 Less inventory shrinkage
 Recognizes procurement opportunities
 Enhances customer knowledge level

6. Significance of Category Management
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 Improves return on investment (ROI)
 Decreases chances of out-of-stock positions
 Enhances return on money invested in marketing
efforts
 Classifies the performance of brands as doing well,
not doing well, problem brands, etc.
 Purchasing merchandise exercise becomes easy and
cost effective

7. Prerequisites of Category Management
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 Category should be divided and arranged as per
consumers’ ease not because of retailer’s convenience
 CM should be based on differentiation and
uniqueness
 CM should drive multiple item purchases at the same
time
 It should result in better customers’ relations rather
than relations with suppliers
 Category division should be based on the basis of
product response, space, time and profitability

8. Category Management- 8 Steps

9. 8-Step process defined
 Define the category (i.e. what products are
included/excluded).
 Define the role of the category within the retailer.
 Assess the current performance.
 Set objectives and targets for the category.
 Devise an overall Strategy.
 Devise specific tactics.
 Implementation.
 The eighth step is one of review which takes us back to step 1

10. Category Captain
 It is commonplace for a particular supplier in a
category to be nominated by the retailer as a
category captain
 The category captain will be expected to have the
closest and most regular contact with the retailer
 He will also be expected to invest time, effort, and
often financial assets into the strategic development
of the category within the retailer
 In return, the supplier will gain a more influential
voice with the retailer

11. Category Captain
 The category captain is often the supplier with the
largest turnover in the category
 Traditionally the job of category captain is given to
a brand supplier, but in recent times the role has
also gone to particularly switched-on private label
suppliers