Category management

Category management is a retailing and purchasing concept where the range of products sold by a retailer is broken down into discrete groups of similar or related products; these groups are known as product categories. It's a systematic, disciplined approach to managing a product category as a strategic business unit.

Here's a detailed look at category management for national retailers:

1. Category Definition

The first step in category management is defining your categories. A category could be a group of products that serve a similar purpose, are used together, or are considered substitutes for each other. The goal is to organize products in a way that makes sense to the customer.

. Category Role

Next, determine the role of each category. Some categories might be traffic builders that draw customers into the store, while others might be profit generators. The role of the category can guide decisions about product assortment, pricing, and promotion.

3. Category Assessment

Assess the performance of each category. This could include measures like sales volume, profit margin, market share, and customer satisfaction. This assessment can help you identify opportunities for improvement.

4. Category Strategy

Based on your assessment, develop a strategy for each category. This could include adding new products, discontinuing underperforming products, adjusting prices, or changing the way the category is promoted or merchandised.

5. Category Tactics

Implement your category strategies through specific tactics. This could include changes to product assortment, shelf placement, pricing, promotion, and supplier relationships.

6. Category Review

Regularly review the performance of each category and adjust your strategies and tactics as needed. This is an ongoing process of assessment, strategy development, implementation, and review.

At Sell2Retail, we offer comprehensive retail solutions, including advanced category management. We're not just about getting your products on the shelves - we're about making sure they fly off them.