Modern Retail Buying Teams run categories (a section in a supermarket which contains a number of brand and / or own label products, generally complimenting or competing with one another) as separate business units.
This means that each will have volume, value, profit and strategic targets.
Category Managers work to increase revenue by optimising the impact of the products within the category to the maximum number and types of shoppers.
The skill of a good category manager is to be unbiased, often designing strategies which have a positive impact on the category as a whole; thereby ensuring the supplier receives the same share but of a larger pie (category).
Category Management involves a number of key stakeholders; starting with the retailer or retailer’s category, a supplier is the first stakeholder who will interact with the retailer.
From a Category Management (CatMan) perspective the supplier will provide insight from the other 2 groups of stakeholders: shoppers and consumers.
Retailers will also interact with those 2 stakeholder groups from a CatMan perspective, gathering insight, data and information which is usually sold to suppliers via third parties who will then integrate this into CatMan solutions to ensure continued Category Success.
A Category Manager needs to put the shopper and consumer at the centre of their category plan by asking and answering the following questions:
An Integral Part of Category Management is:
Shopper Marketing: ‘Understanding how one’s target consumers behave as shoppers throughout the total purchase journey, in different channels and formats, and leveraging this intelligence to the benefit of all stakeholders – brands, consumers, retailers and shoppers – at the point of purchase and through the alignment of in-store and out of store activities.’ IGD