20 May Effective Category Management
The term “Category Management” has been around for some time now, but what is it and what does it mean for your business?
Irrespective if you are a manufacturer, a wholesaler, a retailer or a consumer, effective category management is important for us all.
A Category is a collection of similar products, which when managed effectively in a retail environment, enables manufacturers to get their products effectively selected by consumers, enables retailers to secure a sale in their stores and enables consumers to make the right purchase decision over the choice that is available.
If we take a closer look at the process, it will help you understand if your products are being effectively category managed or if you need to add some focus with your retail customers.
Sales Review
The starting point for any category managed approach is reviewing the current brands listed in store, the different product ranges available and the prices and promotions that are in place, to help understand if the “product offer” is correct and working as hard as it should. Many manufacturers will work with retailer buyers to assist in this process, reviewing category sales, not only of their own products but that of their competitors, to put forward a final category management proposal which will work effectively for both the retailer and the consumer.
Research
Many brand owners will also work with their retailer customers to commission accompanied shop research, where consumers will be observed shopping the fixture, pre and post purchase, to get an understanding of what motivates the consumer to purchase that product. Was it price? brand? promotion ? or something else?
Point Of Sale
Many consumers are influenced by promotional deals or branding. To help with this many brand owners will pay a premium to block a space in their store or locate their products in a particular section of the store like the end of an aisle, often called a “power end” as these areas enjoy the most amount of consumer footfall and awareness, which then leads to their products being purchased.
Are your products working as hard as they can in the retailers they are listed? PMF Marketing has a number of solutions for businesses that manufacture and distribute products and has ideas that can help drive your products off the shelf.
If you would like to understand more how I can help your business, please call me today for a FREE 30 minute call and lets get building your business back to growth together.
