Category Management Principles and Processes - Essay
Added on 2020-01-07
12 Pages3732 Words429 Views
Category ManagementPrinciples and Processes
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3ESSAY ............................................................................................................................................3Overview......................................................................................................................................3Key principles and processes of category management..............................................................4A strategic perspective ................................................................................................................6Describing the role of the buyer in retail.....................................................................................8The implication of supplier relationship within the retail organization ......................................9CONCLUSION .............................................................................................................................102
INTRODUCTIONCategory management is important concept of retailing and purchasing that refers torange of products which are purchased by a business entity or sold by a retailer. Further, it isdivided into distinct groups of identical products. It can be simply refereed as product category.Further, category management can be refereed as procedure that include managing wide range ofcategories of product as organizational units and making them tailor made so as to meet theneeds of customers (Varley, 2014). It is important process used by distributors or suppliers asway of administrating categories as strategic unit of business. The main objective of categorymanagement is to provide value to the customer. In this respect, various aspects of categorymanagement principles and processes will be studied with reference to Tesco. It is a Britishmultinational grocery and general merchandising retailer incorporated in London in year 1919.In this report, a clear understanding will be shown regarding the role of buyer. Thereafter,implications of supplier relationship in contemporary management will be studied ESSAY OverviewCategory management can be defined as mutual constant procedure between producersand retailers to manage product categories as strategic business units, producing improvedbusiness outcomes by concentrating on providing value to customers. It is important conceptrelated to retail buying and merchandising. With regards to this, retail can be refereed as sale ofproducts and services from Tesco store to its final users. The retailers can be refereed ascomponent of supply chain (Category Management, 2016). Tesco buys products in amplequantity directly from producers and then offer them in smaller quantity to customers for earningrevenue (Kumar and Patel, 2010). Therefore, the organization follows modern retailing whichenable it to purchase products from manufacturers and offering them directly to consumers. Onthe other hand, merchandising is important concept related to boosting the sales of products atthe cited retail store. For this aspect, Tesco assures that products are showcased in such a mannerthat it drives interest of consumers to make an immediate purchase (Jayyusi, 2014). Therefore,the entity strongly focus on physical appearance of store such as, displaying the products3
properly in shelves, using mannequin to showcase apparels etc. It also helps in generatingawareness about wide range of products that are offered by brand. Key principles and processes of category managementIt can be stated that category management is founding stone for ensuring smoothoperations of the retail organizations. It facilitates the retail corporations to make purchase inbulk quantity and manage category of products as strategic business units to satisfy customerrequirements. The retail organization implements the main principles of category management incore areas to facilitate overall business strategy (Gauri, Trivedi and Grewal, 2008). There arefive major principles that are considered by Tesco as well as other retailers in UK. Theexplanation of which is as follows:Cross functional team approach: It means groups of individuals with various types ofoperational expertise working towards a mutual goal. It involves customers, marketingpersonnel, employees handling operation as well as human resource department. Theycollectively help in specifying category, quantity of product that must be offered performancecriteria etc. They further help in determining sourcing strategy for business (Andres Coca-Stefaniak, Parker and Rees, 2010). Strategic sourcing is way that helps business in using variedtools and techniques to optimally source products according to the needs of the consumers. Strong supply market knowledge: In order to meet the needs of customers in bestmanner, the organization ensures proper availability of products aligned with needs of buyers,demand of quality and quantity of offerings etc. Such as, with the increase in demand of organicfood, fermented groceries, majority of retailers have started supplying the same. Change management: It is important approach that help business in assuring flexibleoperations so as align with changing preference of customers. With the help of changemanagement, Tesco has initiated a significant change by providing products through onlinestores (Zhang, 2009). With this aspect, enterprises can support their efforts through performancebenchmarking. In addition to this aspect, effective strategy can be developed to support change.Process rigor: It is important principle that enables the organization in incorporatingdefined processes and techniques to facilitate category management and furnish top qualityproducts to customers. With the help of this concept, maximum customers stimulate the productsoffered by the retailers (Chen and Roma, 2011). Further, company also assures that proper4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Study On Sainsbury - Category Management Principleslg...
|12
|4060
|38
Essay On Category Management by Retailerslg...
|10
|3973
|82
macro environment analysislg...
|1
|430
|36
Strategic Management: Planning, Analysis, and Review of Tescolg...
|10
|3172
|72
Strategic Management of Tescolg...
|11
|2824
|365
Marketing Strategy of Tesco Plclg...
|12
|1784
|81