{"id":98,"date":"2021-04-20T19:31:27","date_gmt":"2021-04-20T19:31:27","guid":{"rendered":"https:\/\/microsites.nielseniq.com\/cpg-dictionary\/dictionary\/category-management\/"},"modified":"2022-11-16T21:27:10","modified_gmt":"2022-11-16T21:27:10","slug":"category-management","status":"publish","type":"dictionary","link":"https:\/\/microsites.nielseniq.com\/cpg-dictionary\/dictionary\/category-management\/","title":{"rendered":"Category management"},"content":{"rendered":"<h2><span style=\"font-weight: 400;\">What is category management?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Depending on who you ask, the specific definition of <\/span><span style=\"font-weight: 400;\">category management<\/span><span style=\"font-weight: 400;\"> may change slightly. However, everyone agrees that this term refers to managing different product categories rather than focusing on individual items or brands. <\/span><span style=\"font-weight: 400;\">Category management<\/span><span style=\"font-weight: 400;\"> involves input and strategy from various retailers and manufacturers so that they can deliver better results for their customers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Category management<\/span><span style=\"font-weight: 400;\"> began in the late 80s\/early 90s so that there could be better collaboration between companies to benefit consumers. If each brand kept its data a secret, it would be impossible for everyone to market and sell effectively.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">How do you manage the category management process?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">While each company can manage product categories with unique processes, there are eight steps that brands can follow to ensure better <\/span><span style=\"font-weight: 400;\">category management<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Step One: Define the Category \u2013 During this step, you need to set parameters for the category, including sub-categories and consumer behavior.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Step Two: Determine the Role of the Category \u2013 What is the driving purpose of the category? Is it to bring new customers in or to expand your product line?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Step Three: Assess the Category \u2013 Here is where you look at all the data related to the category to anticipate any changes or trends. This step is the most time-consuming.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Step Four: Come Up With a Category Strategy \u2013 Once you determine the category\u2019s role, you need to know how you\u2019re going to achieve it. This step lets you figure out how to get from where you are now to where you want to be.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Step Five: Implement Your Strategies \u2013 Now that you have a game plan, you can start putting it into action.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Step Six: Review and Assess Your Progress \u2013 The only way to ensure that your processes work as efficiently as possible is to review them in action. Look at your data and see how it changes with various techniques.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Why is <\/span><span style=\"font-weight: 400;\">category management<\/span><span style=\"font-weight: 400;\"> important?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Managing product categories is helpful because you can work with other vendors more efficiently and deliver better results for your customers. By understanding the entire category, not just your products, you can anticipate trends and add value to the customer experience.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the back end, <\/span><span style=\"font-weight: 400;\">category management<\/span><span style=\"font-weight: 400;\"> helps keep your operational expenses relatively lean because you can focus your attention on products and marketing strategies that work. Instead of guessing and taking a shot in the dark, you can align your teams more effectively.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">FAQs about <\/span><span style=\"font-weight: 400;\">category management<\/span><\/h2>\n<h3><\/h3>\n<h3><span style=\"font-weight: 400;\">What is a <\/span><span style=\"font-weight: 400;\">category management<\/span><span style=\"font-weight: 400;\"> strategy?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A <\/span><span style=\"font-weight: 400;\">category management<\/span><span style=\"font-weight: 400;\"> strategy is what you come up with after determining the role the category should play. This strategy needs to be data-driven and specific, such as building more traffic or increasing your profit margin.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What are the four p\u2019s of <\/span><span style=\"font-weight: 400;\">category management<\/span><span style=\"font-weight: 400;\">?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The P\u2019s stand for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Product \u2013 Make sure that you have the correct number of products within the category. This number is based on the role you choose for that category.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Price \u2013 The price point can also be a marketing tactic as it can compel shoppers to buy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Placement \u2013 You need to work with retailers to ensure that your shelf placement works well for the product category.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Promotions \u2013 You should develop a long-term promotional calendar for your products to capitalize on various trends and seasonal changes.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">What is the role of <\/span><span style=\"font-weight: 400;\">category management<\/span><span style=\"font-weight: 400;\">?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Category management<\/span><span style=\"font-weight: 400;\"> is there to help your business understand consumer behavior and make better purchasing decisions. Since your profit margins are relatively slim, <\/span><span style=\"font-weight: 400;\">category management<\/span><span style=\"font-weight: 400;\"> enables you to keep a leaner and more efficient bottom line.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How Byzzer can help<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The CPG industry as a whole is awash with data, and <\/span><span style=\"font-weight: 400;\">category management<\/span><span style=\"font-weight: 400;\"> relies heavily on it. That said, if you don\u2019t know how to read and digest this information, it\u2019s impossible to develop a cohesive <\/span><span style=\"font-weight: 400;\">category management<\/span><span style=\"font-weight: 400;\"> strategy. Fortunately, <a href=\"https:\/\/byzzer.com\/\" target=\"_blank\" rel=\"noopener\">Byzzer<\/a> has the tools and insight to help you get the most from your product categories. <\/span><a href=\"https:\/\/www.byzzer.ai\/?_gl=1*1uoj5i*_ga*MjEyMDMyOTEyMS4xNjI0ODg2NDgx*_ga_R835E7T3CF*MTYzMDQyNzAzMC40OC4wLjE2MzA0MjcwMzAuMA..&amp;_ga=2.264737036.2090672886.1630336693-2120329121.1624886481#\/auth\/sign_up\/personal\"><span style=\"font-weight: 400;\">Start a free trial today<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Retailers (also known as buyers) employ category management teams and\/or category managers to oversee categories of their stores.<\/p>\n","protected":false},"author":0,"featured_media":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"glossary":[4],"class_list":["post-98","dictionary","type-dictionary","status-publish","hentry","glossary-c"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/microsites.nielseniq.com\/cpg-dictionary\/wp-json\/wp\/v2\/dictionary\/98","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/microsites.nielseniq.com\/cpg-dictionary\/wp-json\/wp\/v2\/dictionary"}],"about":[{"href":"https:\/\/microsites.nielseniq.com\/cpg-dictionary\/wp-json\/wp\/v2\/types\/dictionary"}],"version-history":[{"count":1,"href":"https:\/\/microsites.nielseniq.com\/cpg-dictionary\/wp-json\/wp\/v2\/dictionary\/98\/revisions"}],"predecessor-version":[{"id":124,"href":"https:\/\/microsites.nielseniq.com\/cpg-dictionary\/wp-json\/wp\/v2\/dictionary\/98\/revisions\/124"}],"wp:attachment":[{"href":"https:\/\/microsites.nielseniq.com\/cpg-dictionary\/wp-json\/wp\/v2\/media?parent=98"}],"wp:term":[{"taxonomy":"glossary","embeddable":true,"href":"https:\/\/microsites.nielseniq.com\/cpg-dictionary\/wp-json\/wp\/v2\/glossary?post=98"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}