Essay On Category Management by Retailers
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Added on 2020-02-14
Essay On Category Management by Retailers
Added on 2020-02-14
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CATEGORYMANAGEMENT
Category management is a concept of retailing and purchasing of wide range of products.Product are either purchased by business organizations or by retailers. Retailers breaks the widerange of goods into a discrete groups (Varley, 2014). These groups are made either of similar orrelated characteristics of products. In other words the product are classified on the basis ofsimilarity and relatedness by the retailers. Category management is systematic and disciplinedapproach by which retailers display their good to provide convenience to customers (CategoryManagement, 2011). This essay will include various principles and process that are adopted byretailers in category management. Also will include various strategic perspectives that arefollowed by retailers in managing their goods category wise. Further the essay will also includerole of buyers and various implications of supplier relations. Essay will also include examples ofvarious large scale retailers those apply category management strategies and theories in theirrespective stores in UK. Concept of category managementCategory management is collaborative process in which the retailers and manufacturesmanages product in their shops as per the shopper needs state or category wise. This is done tooptimize the sanctification of shoppers as well as it also helps in fulfilling the role chosen byretailer for that particular category within the overall portfolio of categories in the retail format.In simple words, category management is combinations of prices, assortment, shelf presentationas well as promotion which helps in optimizing the category role in the coming time (CategoryManagement, 2011). Category management is analytical and intensive in nature and is all about understandingthe data. Various large scale retailers such as ASDA, TESCO, Sainsbury organisations followssuch management. This management is based on shopper marketing that is emotional in nature.These various retail organisations differentiate their products range and displays their productdifferently. For example- TESCO displays its house products in a different sections then of food2
products in its stores This helps customers convenient to purchase either food products offurnitures. It make easy for customers to find required product (Agrawal and Smith, 2015). Category management have various benefits such as it helps in building more closer andconstructive relationship with stakeholders and service liners. It also focuses on planning phasethat further offer greater scope of improving performance as well as ground breaking solutions. Italso provide a process and a tool set to supports strategic approach for procurement and alsohelps in creating supportive environment (Wrigley and Lowe, 2014). It also enables the variousretailers such as TESCO etc in targeting savings as well as other benefits related to service lines.It also assist in minimising the contract spend through service line engagement, sign off as wellas ownerships. category management also helps in enhancing procurement capabilities acrossvarious retail organisations. Strategic Perspective Strategic perspectives refer to the mission, vision and corporate goals etc of thecompany. To fulfil those goals different organisations go for different ways of categorising theirproducts. For example- the Vision followed by TESCO retail organisation is to meet the needsand demand of its customers and to increase the overall customer satisfaction level. Similarly themission of TESCO is to expand its services throughout the world to provide convenience to itscustomers. Also the corporate goals followed by the TESCO is to inspire as well as earn the trustand loyalty of its customers, colleagues and communities (About TESCO, 2016). For fulfilling and attaining all such objectives and goals of TESCO retail company. Itgoes for categorizing its products in order to provide convenience to its customers. It categoriseits different products in the form of different outlets. It provides wide range of products fromhousehold, furniture, fashion clothes etc. IT has categorised its products on the basis of differentoutlets. That are Skip sores, TESCO homes, TESCO extra, TESCO groceries etc. That is forfood and other grocery items TESCO had open separate supermarkets and marts such as TESCOHomes. Similarly it had open its products in different super markets and marts for clothes as wellas for Finance and Insurance. This helps the customers to more in the supermarkets as per itsrequirement (About TESCO, 2016). It has been a good strategy adopted by TESCO to categorize in the form of its outlets. Itprovides convenience to customers as they have to go to that supermarket in which it will find3
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