Application of Category Management Principles
Application of Category Management Principles
Retail Buying and Category Management Submitted to: Submitted by:
Mr. Sanjay Kumar Chitrangad Bareja
Asst. Professor MFM Semester 2
NIFT Jodhpur (2012-14)
National Institute of Fashion Technology
Ministry of Textiles Jodhpur, Rajasthan
Introduction
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, washing detergent, toothpastes). It is a systematic, disciplined approach to managing a product category as a strategic business unit. The phrase "category management" was coined by Brian F. Harris.
Market insight
Market insight includes activities targeted at collecting and analyzing information about the market environment. The most important goal is to understand the company’s customers and their needs. To stay up-to-date on the trends and customer behavior patterns, category managers must continuously follow information available from various sources: the formal sources such as customer and market surveys and commercial category analysis from, for example, AC Nielsen, as well as informal sources and weak signals such as magazines, blogs, customer feedback, global and local trends, and so on. Thorough customer knowledge combined with an understanding of the competitive situation and the market environment provide a solid basis from which to define the strategy and goals of the company.
Company goals
The business strategy is the starting point for category management activities. In a customer-centric business such
Retail Buying and Category Management Submitted to: Submitted by:
Mr. Sanjay Kumar Chitrangad Bareja
Asst. Professor MFM Semester 2
NIFT Jodhpur (2012-14)
National Institute of Fashion Technology
Ministry of Textiles Jodhpur, Rajasthan
Introduction
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, washing detergent, toothpastes). It is a systematic, disciplined approach to managing a product category as a strategic business unit. The phrase "category management" was coined by Brian F. Harris.
Market insight
Market insight includes activities targeted at collecting and analyzing information about the market environment. The most important goal is to understand the company’s customers and their needs. To stay up-to-date on the trends and customer behavior patterns, category managers must continuously follow information available from various sources: the formal sources such as customer and market surveys and commercial category analysis from, for example, AC Nielsen, as well as informal sources and weak signals such as magazines, blogs, customer feedback, global and local trends, and so on. Thorough customer knowledge combined with an understanding of the competitive situation and the market environment provide a solid basis from which to define the strategy and goals of the company.
Company goals
The business strategy is the starting point for category management activities. In a customer-centric business such