Study On Sainsbury - Category Management Principles

RETAIL AND MERCHANDISING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
STRATEGIC PERSPECTIVE........................................................................................................1
ROLE OF BUYER..........................................................................................................................3
IMPLICATIONS FOR SUPPLIER RELATIONS .........................................................................4
CATEGORY MA NAGEMENT PRINCIPLES AND PROCESSES.............................................6
CONCLUSION................................................................................................................................8

INTRODUCTION
Retail merchandising can be stated as the method through which flexibility can be
delivered to the clients. Furthermore, it also assists in providing the best growth opportunities
and efficiently implement a plan that carries out continues measurement of performance for all
retail programs tailored as per customers requirements. It can be assessed that in a retail store,
merchandising refers to the variety of products available for sale and the display of those
products in such a way that helps in stimulating interest and attracts customers to make a
purchase decision (Dutta, 2015).
In the present study, category management principles are undertaken which is a retailing
and purchasing concept in which the range of products purchased by business enterprise or sold
by retailer is broken down into discrete groups of similar of related products. However, such
groups are known as product categories such as grocery, washing powder, toothpastes etc.
Moreover, it is a systematic disciplined approach in order to manage a product category as a
strategic business unit (Dewhirst, 2012). Here, Sainsbury has been adopted in order to undertake
category management principles and processes in order to maintain cross functional team
approach, strong supply market knowledge and stakeholder engagement etc. Sainsbury is the
second largest chain of supermarket in the UK and thus; provides the best products or services to
attract consumers towards firm.
STRATEGIC PERSPECTIVE
As per the view of Varley (2014), category management can be stated as a collaborative
continuous process between manufacturers and retailers in order to manage shopper
requirements in particular category form so that they can easily obtain desired products. Main
purpose of this process is to optimise shopper satisfaction and thus; fulfils the role of retailer for
that particular category within the overall portfolio of categories in the retail format. Moreover,
the end state of such category management process is the combination of assortment, price, shelf
presentation and promotion of goods that optimises the category role over time. It is the process
through which data intensive and analytical orders can be placed appropriately and thus; shopper
can buy the products accordingly. However, Ridgway and Clayton (2016) argued that it is
significant for retail organisation to identify the needs and requirements of shopper so that they
can place the products in an appropriate order and influence buyers towards products. Retail
1

merchandising is a crucial concept for retail organisations such as Sainsbury to form category
and place it in particular order and thus; attain common goals. It serves as a platform through
which shopper marketing initiatives can be collaboratively launched because the retailer and
manufacturers are aligned around common solution to fulfil the need of buyers.
According to the opinion of Varley (2014), consumers requires variety of products at one
place therefore; large scale retailers undertake such situation and aligned such goals in order to
provide common solution to a need state of the shopper. Company is required to adopt effective
marketing activities which are effort to change attitudes and thereby; provide the best products or
services in order to attain desired goals. Retail organisation undertakes marketing activities that
helps in creating awareness stimulate desire and ultimately differentiate product through giving
consumers a reason to purchase in preference to competition. Also, Piercy and Alexander (2013)
argued that Sainsbury needs to obtain single initiative and campaign to promote the products
among buyers and thus; they can deliver best offers and discounts to consumers so that goals and
objectives can be attained. Sainsbury is required to recruit skilled marketing professionals so that
they can attain desired objectives and thus; merchandise the products carefully in the store so
that it attracts consumers towards firm. It also involves organisation to adopt different research
protocols and different promotional campaigns such as social and digital media to attract
shoppers. With the help of effective marketing, Sainsbury can identify consumer attitude towards
particular product and thus; provide them defined goods so that sales can be enhanced.
Wolfe (2014) examined that shopper marketing is an occasion based component of the
larger marketing function that helps in identifying the buyer perception as per their previous
experience regarding the products in the particular category. Thus, this assists in providing them
efficient product in order to satisfy their needs. Main aim of shopper marketing is that it helps in
enhancing the brand's equity usage and experience at the time of sale. It assesses that shopper
marketing begins as the consumer perceives a need and starts down the path to purchase through
identifying the needs of consumers and providing them particular goods so that sales can be
enhanced. For instance, retail organisation such as Sainsbury shopper marketing is more crucial
component of the overall marketing activity because the product which is sold by retailer is as
per the needs and experience of buyer. Thus, providing desired products as per the needs of
shopper helps retailers to attain desired objectives.
2