Essay on Application of Category Management Principles
Retail Buying and Category Management Submitted to: Submitted by:
Mr. Sanjay Kumar Chitrangad Bareja
Asst. Professor MFM Semester 2
NIFT Jodhpur (2012-14)
National Institute of Fashion Technology
Ministry of Textiles Jodhpur, Rajasthan
Category management is a retailing and purchasing concept in which the range of products purchased by a business organization or sold by a retailer is broken down into discrete groups of similar or related …show more content…
There are two cornerstones in category tactics and execution: the tactogram and the category review. In the category strategy sessions, a category plan and targets have been prepared for each category. In addition, there are the category roles and strategies, and the tactogram summarizing the general guidelines. There are four main steps to follow in category tactics and execution:
1. Create a full internal and external overview of the market environment. For example, identifying the trends, the competitors, the company’s market share, sales development, margin development, assortment width and depth, price comparisons, and so on.
2. Prepare an action plan for the category that is based on the strategic category plan, the tact-gram and the market understanding resulting from step 1.
3. Execution of the plan.
4. Rigorous follow up, review and ongoing improvement.
A practical approach to follow for steps one and two is a category-revision process. This starts with a standardized analysis in order to gain a thorough understanding of the market situation and the company’s current performance in the category. Based on the analysis, a standardized revision template can be used. Completing the template requires that you draw conclusions and draft an action plan. This document should serve as key input to the category-revision meeting. Representatives from category management, sourcing and formats should finalize and