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15-11-2017

Category management: the management by product categories

What is?

Category management is a process of business shared between manufacturers and distributors whom it tries to manage, to administer and to evaluate the product categories as independent units of business, focusing in giving value to the consumer to satisfy his needs and to secure therefore a profitable growth for the company.

 

Nowadays, within the product management we must differentiate three concepts:

  1. Product categories: set of all those products that are destined to a same aim within a certain frame of action. Its management of strategic and independent way will give rise to category management.
  2. Family: product group that within a same category they have, as well, a specific aim.
  3. Spurted: variety and amount of products that are at readiness to offer the companies to their clients.

 

Examples

In the famous brand of Bosch electric home appliances, we can differentiate four categories from products different within the product family of the business of Small Electric home appliance:

  • Food preparation
  • Ironing
  • Aspiration
  • Taken care of personal

Within each of these four categories we found different product groups:

  • Beaters of hand, mixers, beaters of glass, toasters, lemon squeezers, cabbage-cutters, coffee pots… in food preparation.
  • Plates of steam, injection or centers of ironing in ironing.
  • Vacuum cleaners with stock market or without stock market or of sweep in aspiration.
  • Plates of hair, dryers or scales in personal care.

The assortment all the varieties of hand beaters will conform it that are offered, for example.

 

What category does el/la manager?

Category manager, also denominated CATMAN, is in charge to manage one or several product categories as different strategic units of business and their objective are to satisfy the needs and requirements with the consumer at the same time as it secures to stops benefits for the category.

The CATMAN must analyze enormous amounts of information: investigation of market, information of point of sale, behavior and needs of the consumer. With this information the categories and their corresponding characteristics, their consumers will be identified, the tendencies… thus to be able to arrive at insights (findings). To insights obtained the base of a strategy will be satisfied to impel the growth of the category, which will benefit so much to the retailer as to the supplier.