Category Management
Working Paper: Category Management (CM) in Indian Marketing Context
M Scalem†, Divyanshu††
†Management Information Systems [MIS] Department, Indian Institute of Management-Calcutta (IIMC), Joka, Diamond Harbour Road, Kolkata, West Bengal State, India 700104.
Email: scalem@iimcal.ac.in
†† Consultant, i2 technologies India Pvt Ltd, Andheri (East), Mumbai, State of Maharashtra, India 400 096
Email: div_anshu@yahoo.com
Abstract
Category management has been a potent tool for transformation of retail industry worldwide, especially the US. The USP of Category management is in the fact that instead of the emphasis on brands within a single category of products thereby enhancing competition within a category, it takes a holistic view of the category and attempts to maximize profits for the whole category. By doing so, it professes to optimize profits of the individual brands within the category also.
In India, the modern retail industry is in a nascent stage but with a huge potential and a rapid growth projected in near future. There is much scope for venturing into category management, given its proven applicability in the West and its feasibility in transforming Indian retail industry.
This paper proposes a strategic framework for implementation of Category Management in India as also the guidelines for doing the same.
Keywords
Category, Category Management, Indian Retail Industry, Category Captain, Retailer-Supplier Relationship, Retailer-Consumer Relationship. 1. INTRODUCTION
Category Management can be defined as a retailer-supplier process of managing categories (distinct manageable group of products) as Strategic Business Units (SBUs), producing enhanced results by focusing on delivering consumer value. Category management was developed as a strategy for retailers to successfully compete in each retail category for the shopper’s loyalty and money.
Traditionally, retailers used to assign buyers to purchase brands of specific manufacturers
M Scalem†, Divyanshu††
†Management Information Systems [MIS] Department, Indian Institute of Management-Calcutta (IIMC), Joka, Diamond Harbour Road, Kolkata, West Bengal State, India 700104.
Email: scalem@iimcal.ac.in
†† Consultant, i2 technologies India Pvt Ltd, Andheri (East), Mumbai, State of Maharashtra, India 400 096
Email: div_anshu@yahoo.com
Abstract
Category management has been a potent tool for transformation of retail industry worldwide, especially the US. The USP of Category management is in the fact that instead of the emphasis on brands within a single category of products thereby enhancing competition within a category, it takes a holistic view of the category and attempts to maximize profits for the whole category. By doing so, it professes to optimize profits of the individual brands within the category also.
In India, the modern retail industry is in a nascent stage but with a huge potential and a rapid growth projected in near future. There is much scope for venturing into category management, given its proven applicability in the West and its feasibility in transforming Indian retail industry.
This paper proposes a strategic framework for implementation of Category Management in India as also the guidelines for doing the same.
Keywords
Category, Category Management, Indian Retail Industry, Category Captain, Retailer-Supplier Relationship, Retailer-Consumer Relationship. 1. INTRODUCTION
Category Management can be defined as a retailer-supplier process of managing categories (distinct manageable group of products) as Strategic Business Units (SBUs), producing enhanced results by focusing on delivering consumer value. Category management was developed as a strategy for retailers to successfully compete in each retail category for the shopper’s loyalty and money.
Traditionally, retailers used to assign buyers to purchase brands of specific manufacturers