Definition of A Category
The Nielsen definition of a category, used as the basic definition across the industry is that the products should meet a similar consumer need, or that the products should be inter-related or substitutable. The Nielsen definition also includes a provision that products placed together in the same category should be logistically manageable in store (for example there may be issues in having room-temperature and chilled products together in the same category even though the initial two conditions are met).
However, this definition does not explain how the process often works in practical retailing situations, where demographic or marketing considerations take precedence.
Read more about this topic: Category Management
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