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  1. Dr. RAMKI
  2.  Definition of Category Management  History of Category Management  What is Category Management  Types of Categories in Retailing  Category Management Process
  3. Category management started in North America in the 1980‘s In 1992, the Category Management process began slowly to gain momentum across the UK, Europe and Canada. At first, it was limited only to grocery (hypermarket and supermarket) retailing, but as the advantages became more clear, it spread into other retailing sectors such as pharmacy, C&C and DIY.
  4. Manufacturers – Coca – Cola and Philip Morris were the initial companies that made Category Management popular among Retailers and explained them the importance of Category management in their businesses. Category Management then re-gained its drive in the later 1990's embracing more aspects : Planogramming, Price Architecture, Promotional Strategy Shopper Understanding. The retailers that pioneered category management are amongst the largest chains in the United States - Safeway was one of the original practitioners. Others included Krogers, Albertson’s, and Publix. Super-valu, was the first wholesaler to practice category management and introduced the process, to small independent retailers.
  5. A distinct, manageable group of products/services that consumers perceive to be interrelated and/or substitutable in meeting a consumer’s needs. Category Management can be summed up as : A retailing process in which first of all, all likeminded products in a retailer's total portfolio are lumped together into product groups called "Categories". So examples of Categories would be, for instance : toothpastes, washing-up liquids, baked beans, dog foods, cosmetics, shoes etc Each Category is then run like a "mini-business" in its own right, managed by both the retailer and suppliers, with its own Category turnover and/or profitability targets.
  6. Category management involves organizing and managing a distinct group of products or services which the consumer perceives to be inter - related or substitutes . It also includes managing promotions, merchandising, visual merchandising and supply chain, so as to generate and enhance the customer value and generate return on investment for the retailer. Dr. Ram Kishen.Y.
  7. Merchandising Category Sub – Category SKU’s SCM
  8. For the store…… Good retailing is about “product performance”. It improves Sales and Customer Satisfaction. Improve the return on inventory management and cash flows Improve your GMROI - combination of stock- turns and gross margins
  9. For the customers….. wider choice of selection, better stock availability (no stock-out problem) Proven results - Higher category sales and stock - turns, can generate more discounts and increase basket size purchase for the customer.
  10. Category Bifurcation Impulse Category Footfall Drivers Category Browse Category Destination Category Anchor Category
  11. Impulse Category are categories that people buy on impulse, i.e., without planning to do so. Retailers commonly place these items near the checkout counters of supermarkets, filling stations, and other retail outlets. Products such as chocolates, snacks, chewing gum, ear buds etc, are some examples.
  12.  Footfall drivers are Categories that the retail store is famous to drive Customers towards the Store. Footfall drivers are revenue generators for Retailers. They are placed at strategic locations in Retail Shelves.. Amazon Go Store
  13.  Browse Category is that category wherein the customer will see these items for the first time, but may purchase it later. Retailers mostly display the Browse categories at Window Displays for excellent visibility / give more offers and discounts to increase sales.
  14.  Destination category are popular products which don’t require a good display. These items will sell anyways, because there is a huge demand for them. These products are mostly called as category captains.
  15.  Anchor Category are mostly called as Category killers. These are items that are offered at heavy discounts and will attract customers to shop for them. For example, Furniture in IKEA store, or accessories in a Croma Store.
  16. Within a category, Products will be assigned sub-category roles. Types of sub-categories are as follows: Traffic Builders: Categories with high market share. Transaction Builders: Categories frequently purchased on impulse. Cash Generators: Categories with high stock turns and margins. Image Creators: Categories promoted with features that make them unique. Excitement Creators: Categories with high impulse appeal.
  17. The product line and length offered is typically called ‘CATEGORY’ Category management in retailing parlance means to provide more no of products variety (assortment), range and SKUs. Category management encapsulates merchandising. Retailers have to design their category management strategies according to the store format and layout.
  18. Length Breath (Width) Depth Consistency No. of Categories Sub – Category Variants X SKU’S = ASSORTMENTS No. of Lines RANGE PLANNING LRP SRP
  19. Brand Promoters In – Store Promotions Bundling ShelfTalkers – can be used for Category Bifurcation
  20. Category killer is a term used in marketing and strategic management to describe a product, service, brand, or company that has such a distinct sustainable competitive advantage that competing firms find it almost impossible to operate profitably in those products. The definition most often associated with the term is a big-box retail chain (such as Home Depot, Best Buy or Toys "R" Us) that is focused on one or few categories of products and offers a wide selection of these items, in these categories at relatively low prices. An example of a category killer business is eBay / Alibaba. These online auction sites have a near-monopoly because buyers and sellers naturally gravitate to the largest, most liquid market. As a result, the site has almost no competition and has forced similar auction sites into a very small portion of the market.
  21. Often, a retailer will invite one of his suppliers with abilities in Category Management to be the Category Captain. The Category Captain is not always the supplier with the largest turnover.
  22. E-Commerce. Exotic Categories. Bizzare Foods. TechnologyAdvancements.
  23. The Future of Category Management will be - . The data explosion ( AI, ML & IOT) Streamlined Processes Aisle Management Relationship with other departments Micro-marketing
  24. Category management is not enough anymore,Shopper insights alone don’t tell the whole story. The real category leadership potential lies in synthesizing insights around the consumer, the shopper, the category, key competitors and company capabilities.
  25. Category management is a way of managing products on the level of a product group, rather than on the level of single product. Category management not only is about the retailer, but also the manufacturer is involved in a similar optimization process with regards to logistics and promotions.
  26. Dr. RAMKI