Category management is about
balance: product ranges with shelf
space, volume with profitability
and days of supply with turnover,
or stock turns.
Category management is about
making the entire category as
profitable as possible by balancing
market share, sales data, supplier
relationships (incorporating the
buying deal, rebates, coop, training
and other applicable elements) and
your store’s unique requirement to
come up with a strategic plan for
each category.
Each plan is not static; it changes
periodically, most commonly
seasonally, to adjust to changing
requirements, products and demand.
A key part of category
management is merchandising.
Effective merchandising is all
about ensuring the most desirable
ranges (for the store and the
customer) are allocated enough
space and optimum positioning to
minimise out of stocks whilst also
meeting demand.
Merchandising is an integral part
of retail and the primary focus of
merchandising is ‘the shelf’.
The shelf is the only time in the
whole supply chain where the
supplier, retailer and consumer
come together.
Given that research suggests that
the vast majority of purchases (up
to 75% dependent on the channel)
are decided at the shelf, it certainly
pays to get the mix right.
An effective merchandising
approach within a targeted
category strategy can improve
category performance, maximise
returns, and
strengthen your
relationship with
the customer, it
can also give you
and your staff a
blueprint for
creating the best
selling
environment.
This
week’s contributor is Instigo’s David
Zivkovic.
