Category Management NameRoll No Aarti Bhatia4 Renuka T56 Deepak Ramakrishnan8.
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Transcript of Category Management NameRoll No Aarti Bhatia4 Renuka T56 Deepak Ramakrishnan8.
![Page 1: Category Management NameRoll No Aarti Bhatia4 Renuka T56 Deepak Ramakrishnan8.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697c01f1a28abf838cd1a60/html5/thumbnails/1.jpg)
Category Management
Name Roll No
Aarti Bhatia 4
Renuka T 56
Deepak Ramakrishnan 8
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Category Management
What is a Category?Assortment of Items having common characteristics that the customer sees as substitutesMeans different things to different retailers.
Category Management-DefinedA 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
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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
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Category captain
• 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.
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Process Of Category Management
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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
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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
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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
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Product Hierarchy
• Category
• Sub-category
• Brand
• Manufacturer
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Product Hierarchy - Watches• Category : Watches• Sub-category : Leather/Steel/Steel-
gold/Gold watches• Brand : Titan/Nebula/ Octane/Edge/
Orion/ Raga• Manufacturer : Titan Industries Ltd.
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• Category : Footwear
• Sub-category : Mens/ Ladies/ Children/ Sports/ Accessories
• Brand : Ambassador/Hush Puppies/ Dr. Scholls/ Marie Clarie/ Power/ North Star
• Manufacturer : Bata India Ltd.
Product Hierarchy - Footwear
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• Category : Writing Instruments
• Sub-category : Ball pens/Gel pens/Fountain
pen/Inks & Refills
• Brand : Vector/ Latitude/ Quink
• Manufacturer : Newell Rubbermaid Co
Product Hierarchy – Writing Instruments
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Beauty Shop
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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 - 15 brands» Parlour Items – 5 brands
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Category contribution at Beauty Center
Hair Care12
Leather5
Footwear5
Skin care 23
Gift Items10
Male grooming5
Soaps5
Parlour Items & others
3Fragrances 10
Color Cosmetics
22
Gift ItemsMale grooming
SoapsHair CareLeatherFootwear
Skin care Color Cosmetics Fragrances
Parlour Items & others
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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%
In a beauty shop
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Contribution Of Top brands
Chambor11%
Others7%
Lakme38%
Revlon24% Loreal
20%
Lakme
Loreal
Revlon
Chambor
Others
Brand Contribution to Category
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Brand v/s SKU
• Skin Care
• Lip Products
• Nails
• Face
• Eye
Microsoft Office Excel Worksheet
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Thank You