How can you benefit from category management?

In my experience, while very difficult for retailers to embrace admittedly, the best approach is customer management not category management. 1 have a customer strategy and defined customer segments with unique needs that you believe your brand (or category) is best positioned to win 2. Understand the distinct shopper missions that customer group (s) seeks and the role / importance of your category / retailer in meeting that need 3. Understand all categories that connect into that mission and underlying drivers of retailer or Brand preferences 4 build your 4Ps after you know points 1-3.

Category mgnt is crucial for any brand serious about strategy. At the core of your where to play and how to win choices, sit your intelligence regarding industry structure, segmentation and competitive analysis…with regards to both costs and capability.

From my perpective it is part of a greater context. Category management is in a way the definition of your retailer's brand. Say the building blocks of your retailer's brand and positioning. That context is first required before starting starting on category definitions. In addition, this step should also define category roles. What role does a category have in relation to your retailer's brand and what do your shoppers expect?

Following are the benifit of Category Management Cost Efficient Improved Productivity Enhanced Customer Experience Data-Driven Decision Making Inventory Management Brand Partnerships Revenue Growth

In a competitive consumer electronics market, we set ourselves apart by offering expert assistance instead of self-service. Our guides provided technical insights and personalized recommendations, building trust with customers. We also revamped the shopping experience by highlighting complete solutions, not just products. Bundles that addressed specific needs boosted sales and differentiated us from rivals. This creative approach improved customer loyalty and satisfaction, showcasing the importance of strategic thinking in category management.

This is also the part where you think about customer expectations, customer journey, touch points, decision trees etc. Analyze how customers shop and how you can relate your category to your retailer's brand and positioning.

Category objectives might also include more qualitative objectives, so the aspired effect on your target audience. Think about customer satisfaction, loyalty, or how it fits the retailer's brand and positioning.

Two things I like to add from my experience. 1. Try to get into a 'change rythmn', so your whole organization knows when changes (might) come for categories. For instance every 6 months. 2. Testing is key to get real-time feedback of your plans and thoughts. Implementation can always be tested first. It is prudent to experiment first in a smaller group before rolling-out nationwide.

In my view this is the beauty of category management, as consumer behaviour or the market contex changes, you should change too. It is a cycle that never ends. Small categories might grow, big categories might shrink all to fit the changing environment.