Have you ever noticed or wondered why products are placed the way they are on the shelves? Did you ever purchase something you were not planning on purchasing because it was next to another item??? Product Pos – an image a product projects

Did you know that is all another part of MARKETING Did you know that is all another part of MARKETING!? Category Management (Planograms)

Category Management category management A process that involves managing product categories as individual business units. Category management - is a process that involves managing product categories as individual business units. A category may include a group of product lines with the same target market and distribution channels (ex. Beauty products or fishing tackle). Marketing Essentials Chapter 30, Section 30.2

Category Management The category manager is responsible for all the brands of one product category such as: Foods Beverages Health and beauty products They are responsible for profits or losses of the product mix and lines in their category. Deal more with other managers from finance, production, and research and development (vs. Product Manager) Position evolved from a “product manager” – they handle a specific product and deal directly with sales force Cm ranked 81 in Americas top jobs in 2010 *Marketing consultants *#2 2012 according to cnn money 92-208,000 Marketing Essentials Chapter 30, Section 30.2

Category Management planogram A computer-developed diagram that shows retailers how and where products within a category should be displayed on a shelf at individual stores. Manufacturers can customize a product mix within a category on a store-by-store basis. A planogram - is a computer-developed diagram that shows retailers how and where products within a category should be displayed on a shelf at individual stores. Maximize a products potential Highlight related products Customizable per store Next time you visit a supermarket, walk down the aisle and notice how products are placed on shelves!

The stores planogram will indicate that items (ex The stores planogram will indicate that items (ex. Baking supplies) be stocked together. Sugar, floar, oil grouped vertically and like items side-by-side Top dia- aisle number, hight/width of shelves, and overall, indv product position Bottom- try not to place outside customers reach – shows how high the avg. man/woman can reach

Where do you think name brand items are typically placed? Eye level for maximum exposure Generics are often displayed on bottoms shelves Ever notice adult products (ex. Cereal) placed high and children's low?? No coincidence…marketing at its finest! -Cornell Study

Different planograms may be used to position products at clothing stores. Focus on display and design Featured lines placed to attract target customers

Why might a retail chain want all of its stores to use the same planograms? Familiar with where to find product (ex. Different Walmart locations) Uniform appearance Corporate managers may be more qualified to create one than local store managers May have agreements with manufacturers and/or vendors on how to display products Why might a retail chain want all of its stores to use the same planograms? To customize and meet local needs/tastes

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SECTION 30.2 REVIEW

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Section 30.1 Product planning involves deciding what features are needed to sell a business’s products, services, or ideas. A product mix strategy is the plan for how the business determines which products it will make or stock. continued

Section 30.2 A product life cycle represents the stages that a product goes through during its life (introduction, growth, maturity, and decline). The goal of product positioning is to set the product apart from the competition.

This chapter has helped prepare you to meet the following DECA performance indicators: Explain the concept of production mix. Identify product to fill customer needs. Establish the nature and scope of the product/service management function. Orient new employees.

CHAPTER 30 REVIEW

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