1. Category Management Name Roll No Aarti Bhatia 4 Renuka T 56
Deepak Ramakrishnan 8

2. Category Management What is a Category?
Assortment of Items having common characteristics that the customer sees as substitutes
Means different things to different retailers.
Category Management-Defined
A Retailer-Supplier process of managing categories as Strategic Business Units, to improve sales and profit by focusing on satisfying consumer needs and delivering consumer value

3. Category Management Objective
Maximize the sales and profits of the entire category, not just a brand: eg Breakfast cereal vs. Kellogg Corn Flake.
An individual manages the assortment of merchandize in the entire category and is responsible for its success/failure - The Category captain

4. Category captain The challenge…
Selected vendor responsible for managing assortment of merchandise in a category.
Vendors have more information and analytical skills about the category in which they compete than retailers.
The challenge…
Vendor category captain may have different goals
than retailer.

5. Process Of Category Management

6. Factors involved in Category Management
SKU targets by category segment- Target is to maximize profitability
• Sales data & supplier performance analysis by segment
• Consumer segmentation
• Product selection/availability
• Store & distribution center space optimization
• Structured listing & delisting processes
• Promotional plans
• Industry trends
• Shelf management

7. Importance of Category Management
Foundation for strategic retail marketing
Consumer focus to Retail Marketing and Merchandising
Data Based Decision making
Higher Operational Efficiency
Optimized Store Assortments
Basis to evaluate new items
Focused on Category ROI - NOT Sales or Gross Margin
Provided foundation for strategic retail marketing
􀂊 Categories as SBU’s
􀂊 Aligning Company to Company strategies
􀂊 Balanced portfolio of Category Roles
􀂊 Linking Category Strategies and Tactics
􀂃 Brought consumer focus to Retail Marketing and
Merchandising
􀂊 New Category Definitions and Structures
􀂊 Consumer-driven Strategies and Tactics
Expanded organizational capabilities
􀂊 New skills and talent
􀂊 Roles and accountability
􀂊 Scorecard-based performance
􀂃 Delivered superior results
􀂊 Retailers and Manufacturers
􀂊 Sales, Profits, and ROI

8. Challenges
The quality of the implementation and execution will determine the degree of competitive advantage gained.
Used more as a tactical tool than an competitive strategic advantage
Too much reliance on manufacturers – lack of retail ownership
Inconsistent implementation at store level

9. Product Hierarchy
Category
Sub-category
Brand
Manufacturer

10. Product Hierarchy - Watches
Category : Watches
Sub-category : Leather/Steel/Steel- gold/Gold watches
Brand : Titan/Nebula/ Octane/Edge/ Orion/ Raga
Manufacturer : Titan Industries Ltd.

11. Product Hierarchy - Footwear
Category : Footwear
Sub-category : Mens/ Ladies/ Children/ Sports/ Accessories
Brand : Ambassador/Hush Puppies/ Dr. Scholls/ Marie Clarie/ Power/ North Star
Manufacturer : Bata India Ltd.

12. Product Hierarchy – Writing Instruments
Category : Writing Instruments
Sub-category : Ball pens/Gel pens/Fountain pen/Inks & Refills
Brand : Vector/ Latitude/ Quink
Manufacturer : Newell Rubbermaid Co

13. Beauty Shop

14. Beauty Shop Total Monthly Sale - 1crore Categories & contribution
Skin care
Color Cosmetics
Fragrances
Parlour Items & others
Footwear
Leather accessories
Gift Items
Hair care
Brands Available
Skin Care - 25 brands
Color Cosmetics – 10 brands
Fragrances brands
Parlour Items – 5 brands

15. Category contribution at Beauty Center

16. In a beauty shop Category Skin care Color Cosmetics
Fragrances (perfumes & deos)
Parlour Items
Stock Turn
5 times
4 times
3 times
2 times
Estimated Sale total sale*% of category contibution
23 lakhs
22 lakhs
10 lakhs
3 lakhs
Average Stock
4.5
5.5
3.3
1.5
% of share of category
23%
22%
10% 3%

17. Brand Contribution to Category

18. Brand v/s SKU
Skin Care
Lip Products
Nails
Face
Eye

19. Thank You