Category Management

Mahander Awana Roy Joseph kalayilSajith KunninmelSudeep Thakkar

Definition of Category Management

“The strategic management of product groups through trade partnerships which aims to maximise sales and profit by satisfying consumer and shopper needs” (IGD)

Category Management Process

Organise

Develop

Monitor

Model Review

Ref - http://www.ups-scs.com

Merchandising & Space Management

Performance Indicators for Merchandising:

1)ABC Analysis (80 – 20 concept)

2)Sales through Analysis

3)GMROI indicator

GMROI = Gross Margin

Avg. Inventory Cost

less product- centric and more consumer-centric:

Loyalty card programme. RFID data. Aisle management and department

management. frequent shopper programmes

Education and training The category management process is

moving from a one-person focus to a team approach.

ECR

process less product- centric and more consumer-centric:process less product- centric and more consumer-centric:process less product- centric and more consumer-centric:

Planogram Sample

Case Study - Sainsbury

Facts- UK Food Market

• UK food industry is worth• 75% of the UK population is concerned

about their fat intake (Leatherhead Food Research)

Issues - More & more customers demanding for

healthier food

Case Study cont..

Solution

- Launched new healthy food product

range called “Be Good To Yourself” in

1998 & re launch in 2006 with low price new

products and ‘apple’ stamp logo.

- Joined ENFRU Ltd (The English Fruit Company)Ref – www.sainsburys.co.uk

Recommendations

- Small retailers can also set up food counter in

store and serve healthy food.

Advantages of Category Management

1) Optimise Category

2) Improve Inventory Management

3) Enhance customer loyalty

4) Keep Sustainable competitiveness

Disadvantages of Category Management

1) Costly & complicated in terms of implementation

2) Organisations might come across skill shortage

THANK YOU

Trends in Category Management

High Market Growth Low

High Winners Sleepers

Opportunities Questionable

Low

Market

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