What are category management strategies?

What are category management strategies?

According to CIPS, category management is a strategic approach that organizes procurement resources to focus on specific areas of spend. Category managers can zone in on one specific category and conduct market or pricing analysis for that particular group.

What are the category strategies?

In brief, there are six category strategies – Traffic Building, Transaction Building, Profit Generating, Turf Defending, Excitement Creating, and Image Enhancing. And similar to your category roles, you can have multiple strategies in your store.

What are the 4 P’s of category management?

The 4 P’s of category management are product, price, placement and promotion. The category manager will ensure that the right products are bought based on his analysis of the previous sales reports and current consumer trends.

What are the five steps of category management?

It’s possible to see five or six steps within the category plan.

• Step One: Define the Category.
• Step Two: Assess the Category’s Role.
• Step Three: Assess Performance.
• Step Four: Set Objectives and Targets.
• Step Five: Develop Strategies.
• Step Six: Category Tactics.
• Step Seven: Implementation.
• Step Eight: Review.

What is category management example?

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 products; these groups are known as product categories (examples of grocery categories might be: tinned fish.

How do you develop a category management strategy?

This involves eight actions:

1. Engage the most important stakeholders.
2. Understand the business requirements.
3. Define a spending baseline and the evolution of that spending over time.
4. Research the supply market.
5. Analyze current suppliers.
6. Perform internal and external benchmarking.
7. Develop the category strategy.

What should a category strategy include?

How do you implement a category strategy?

This involves eight actions:

1. Engage the most important stakeholders.
2. Understand the business requirements.
3. Define a spending baseline and the evolution of that spending over time.
4. Research the supply market.
5. Analyze current suppliers.
6. Develop the category strategy.
7. Plan implementation of the strategy.

How do you create a category strategy?

What is a category management plan?

A Category Plan is a long-term plan based on a high-level assessment of an organisation’s spend and its stakeholders’ requirements. The plan includes purchasing prioritisation, resourcing and scheduling.

What is category management in simple words?