What is category management in retailing?
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; these groups are known as product categories (examples of grocery categories might be: tinned fish.
What is category management in fashion?
A category management process supports in-depth analysis and assessment of the supply market. Category management helps in assessing sourcing destinations, monitor supplier performance, and facilitates an overall powerful category planning cycle.
Why is category management important in retailing?
Category management can help retailers identify key value categories, increase category sales volume, and reduce organizational spend. It can also help businesses gauge new procurement cost management opportunities and improve profit margins.
What is the purpose of category management?
Category Management enables procurement professionals to focus their time and conduct market analysis to fully leverage their negotiations and correctly manage their suppliers in alignment with the corporate objectives.
What is category management in CPG?
Category Management is the primary platform from which CPG brand owners interact with retailers. Category Management provides the language, process framework, and metrics for communicating all strategic and tactical recommendations to the retailer.
What is the main aim of category management?
The goal of category management is to obtain long-term improvements in the efficiencies of the retailer, which leads to increased sales, an improved shopping environment, and customer loyalty.
What are the principles of category management?
The Guiding Principles of Category Management
- Value creating.
- Facts and data driven.
- Consistent application.
- Flexible application.
- Cross-functional working.
- Easy access.
- Data capture.
- Project management.
What is category Management in the retail industry?
Category management is often implemented by big retailers, such as grocery stores, home improvement stores, furniture stores, drugstores, and major ecommerce players like as Amazon.
What are the fundamentals of category management?
The fundamentals of category management revolve around managing categories as strategic business units. At the core of the category management concept is a focus on a better understanding of consumer needs as the basis for the retailers‘ and suppliers‘ strategies, goals and work processes.
What is an example of a product category?
Destination Category : This is the main product offering of the retail store. Examples include fresh groceries at a supermarket and apparel in a department store. Routine category: These are products that a customer buys from the retailer as a matter of routine or habit. Examples include toothpaste, soaps, etc.,
What are the benefits of category Management in procurement?
For starters, an organization can procure goods on a category level, not a product, brand, or store level. This can centralize procurement under one person or team. That can simplify negotiations with suppliers and save the business time and money. Category management can also be used to improve the customer experience.