Impact of Category Management
Focus on Needs
On the full Category of products that meet similar consumer needs, rather than individual products (eg Digital Imaging & Printing category versus just inkjet printers, laser printers; Printer Supplies category v/s ink cartridges)
Increase Sale
Geared towards increasing total category sales(all brands) rather than sale of one particular brand Sell more to consumers
Reduce Inventory
Inventories by driving high selling SKU’s and reducing slow moving items
Cross Sell
Induce more purchase by cross selling Complementary products
Simplify behaviour
Purchasing process for a customer in the store by changing “look & feel” through superior merchandising
Increase profitability
For both retailer and the company
6 step Category Management Process
Total time around 30 weeks from Signing of MOU and NDA
Results Achieved : E.g. 1 in Singapore
| Test | Control | Category Management Impact | Objective | |
|---|---|---|---|---|
| Category | +33% | + 8% | + 25% | + 15% |
| Company | +45% | + 8% | + 37% | + 20% |
Category Growth of +25% much higher than Objective
Company growth much higher than Category Growth