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Category Management

Category management is a process used by retailers to organize and manage groups of related products that consumers perceive as substitutes for each other. It involves promotions, merchandising, and logistics to generate customer value and experience. The document discusses the emergence and importance of category management, different types of categories like anchors, destinations, footfall drivers, and impulse buys. It provides examples of how Big Bazaar and Star Bazaar segment their categories and compares their sales, footfall, and category captain relationships. The conclusion discusses future directions for category management.

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Pushkar
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438 views

Category Management

Category management is a process used by retailers to organize and manage groups of related products that consumers perceive as substitutes for each other. It involves promotions, merchandising, and logistics to generate customer value and experience. The document discusses the emergence and importance of category management, different types of categories like anchors, destinations, footfall drivers, and impulse buys. It provides examples of how Big Bazaar and Star Bazaar segment their categories and compares their sales, footfall, and category captain relationships. The conclusion discusses future directions for category management.

Uploaded by

Pushkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Category Management

Learning Objective

 Introduction to Category Management

 Emergence of Category Management

 Why is it Important

 Types of Categories

 Big Bazaar v/s Star Bazaar

 Category Bifurcation

 Category Captain

 Conclusion
Introduction

Daily Needs

Mr. Abhishek is a consumer who often visits his


local hypermarket to shop for his ‘Daily Needs’
like groceries, vegetables and fruits.
Introduction

However, lately when he had been to Big Bazaar


he wondered how so many categories are
managed by these Hypermarkets?
Introduction

So he decided to find out how this works?


Introduction

Category Management is a process of organising and


managing a distinct group of Products or Services
which the consumer perceives to be interrelated or
a substitute. It Involves promotions, merchandising
and logistics so as to generate and enhance
customer value and experience.
Introduction to Category Management
A category is an assortment of items that a consumer finds as reasonable substitutes
for each other.

Category Management Solutions to gain a competitive advantage


Innovative ideas
Actionable insights
Strategic solutions

The goods are priced, promoted and targeted to same customer base (target market).
Emergence of Category Management

Established – North America, First formalized by Dr Brian Harris in 1980’s

Started with Hyper and Super markets

Strategies that were going to be mutually favorable

Manufacturer – By growing the Retailer - Total profitability of


entire category they grow their their business grow if a certain
share of the business category grows.
Emergence of Category Management

Explosion in Information Technology

Mistaken as Spring-Clean, but re-gained its drive

Phillip and Coca cola – Early Supporters

Optimize the Shopper Experience

 Assortment

 Price

 Presentation

 Promotion
Importance of Category Management
Business Process of Category Management
Mix of Categories

Anchor Destination Footfall Drivers

Browse Impulse
Anchor
What the store Stands for ?

Big Bazaar – Gen Next Star Bazaar

Grocery F&V

Always Placed at the back end of


The store
Browse
1st time see, Next time buy

Big Bazaar – Gen Next Star Bazaar

Personal Grooming/beauty Gift Hampers and Festival Sweets


Products
 Luggage bags and bags
Destination
This is a category with which the retailer wants to profile himself towards his
target consumers and differentiate himself from competition.

95 % Customers Big Bazaar – Gen Next

Grocery and Dairy


Destination
This is a category with which the retailer wants to profile himself towards his
target consumers and differentiate himself from competition.

Star Bazaar – Gen Next 85-90 % Customers

Fruits and Vegetable


Impulse
Unwanted Shopping

Impulse buying category at both the hyper marts are same – For Eg Snack brands,
Chocolate, Cookies, Aerated Drinks etc

POP Advertising is
the best way in
which Impulse
buying can be
triggered.
Footfall Drivers
Gets people in the store to shop and generate money for the retailer

Big Bazaar Gen Next - PKDMD Products


Footfall Drivers
Gets people in the store to shop and generate money for the retailer

Star Bazaar

25% Margin

Approx 20 lakhs /weeks


Big Bazaar V/s Star Bazaar

 Strong Presence – Geographic  Limited Presence – Geographic


Easyday
Competiting with Dmart with 7% off
 Known for the Offers - Eg. Wednesday
bazaar  Quality at lower Price

 Total Footfall – 3000/weekday  Total Footfall – 2500/Weekday


8,000/Weekend Approx 3500/Weekend Approx

Conversion – 90% Conversion – 87%

Sales - 60 lakhs/week (Food Bazaar) Sales – 50 lakhs/week

Future Pay Wallet Club card


Category Bifurcation
Based on Communication – Big Bazaar
Category Bifurcation
Category Bifurcation
Based on Communication – Star Bazaar
Category Bifurcation

Based on Communication
Star Bazaar
Category Captain
Usually it is the leading manufacturer or supplier who serves as the category expert
for a specific product category.

Category Captains drive retailer profits by the strategic development of a specific


category

Eg . Amul (Category captain for Cheese Brand)


Responsibilities of Category Captains include:

 Deciding which products should be on the shelf of their category

 Determining how much space each product deserves

Taking sales into consideration when allocating space to products, without


exerting bias toward a particular product.

Creating the product placement layout and sending the category partners for
feedback.
Future for Category Management

 Will Category Drive formats or will formats drive the categories

Changing the consumer’s Psyche

Positioning of a store will Drive New Categories

Vendor Management will drive pressure for category management to work smart

Information Technology
Conclusion
Behind the Scenes
Behind the Scenes
Thank You

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