At a large level, Category Management Consulting is simple and easy: to enhance customers’ experience, drive competencies for businesses, deliver the quality services and products that generate revenues. As most of us know, it is not as simple as it may sound.
In a real-life, there’s a lot more to this category of management consulting.
Definition of Category Management
Firstly, what’s category management? Well, it’s amongst the harder retail theories to explain, as category management may mean diverse things to diverse people.
Generally, category management is a procedure of bundling products into the singular category, business units, and addressing the procurement, sales, merchandising, and several other retail endeavors on category as a combination.
The central thought behind this very strategy is to articulate the advantages of a category for consumers and eradicate inefficiencies and profitless competition among suppliers & brands within the category. For example, this very approach can assist retailers to lift profits on related products in various ways, including via organizing procurement works under a particular category rather than via supplier or individual brand
Examples of Category Management
Ever thought of what category management looks like in actual life? This theory gives the category manager several options to resolve retail challenges and difficulties.
For beginners, a firm can procure the goods on a category ground, not the brand, product, or store level. It can incorporate procurement right under an individual or a team. This can simplify the negotiations with a supplier and save money and business time.
Category management may also be utilized to enhance the customers’ experience. In a grocery, for instance, the majority of the stores are usually organized via category (produce, dairy, meat, and several others) that goes on to make it easy and simple to navigate the stores and get specific products. Besides, management can bring changes at a category-level.
Category Mang. in Practice
How the firm approaches the strategic concept depends on the firm in question. And for some, it is everything about procurement: buying the right sort of product and service for the category that’ll generate the majority of the sales and the profit for a business.
For several others, it is also about category on a shelf. How a planogram looks, which display and promotion drives the majority of the sales, and which items are most popular for the consumers. Furthermore, this kind of category line also includes an in-depth analysis. The managers are required to know the data behind the category—what’s working, what is not, plus what could be done to enhance.
Keeping this in mind, the job of category manager could simply involve:
- Determining the category
- Examining procurement and spending
- Understanding the behavior of the market and consumers
- Planning the changes and enhancements to the category
- Executing the plan and then measuring the final results
That’s all you have here to read and learn about the role of category management. To know further, you may look over the web and gather more info.