Definition of Category Management (retail)
Category management lacks a single definition thus leading to some ambiguity even among industry professionals as to its exact function. Three comparative mainstream definitions are as follows:
Category management is a process that involves managing product categories as business units and customizing them to satisfy customer needs. (Nielsen)
The strategic management of product groups through trade partnerships which aims to maximize sales and profit by satisfying consumer and shopper needs (Institute of Grocery Distribution)
.. marketing strategy in which a full line of products (instead of the individual products or brands) is managed as a strategic business unit (SBU). (Business Dictionary)
The Nielsen definition, published in 1992, was a little ahead of its time in that customising product offerings on a store by store basis is logistically difficult and is now not considered a necessary part of category management; it is a concept now referred to as micromarketing. Nevertheless, most grocery retailers will segment stores at least by size, and select product assortments accordingly. Wal*Mart's Store of the Community, implemented in North America is one of the few examples of where product offerings are tailored right down to the specific store.
Read more about this topic: Category Management
Famous quotes containing the words definition, category and/or management:
“The physicians say, they are not materialists; but they are:MSpirit is matter reduced to an extreme thinness: O so thin!—But the definition of spiritual should be, that which is its own evidence. What notions do they attach to love! what to religion! One would not willingly pronounce these words in their hearing, and give them the occasion to profane them.”
—Ralph Waldo Emerson (1803–1882)
“I see no reason for calling my work poetry except that there is no other category in which to put it.”
—Marianne Moore (1887–1972)
“The care of a house, the conduct of a home, the management of children, the instruction and government of servants, are as deserving of scientific treatment and scientific professors and lectureships as are the care of farms, the management of manure and crops, and the raising and care of stock.”
—Catherine E. Beecher (1800–1878)