Saturday, September 10, 2011

Category Management Practice

Source:DMS Retail
Category Management is a process that involves managing product categories as business units and customizing them (on a store by store basis) to satisfy customer needs. Nielsen
Category management does more than contribute to the success of a retail organization. It is an essential component.

In fact, it's difficult to imagine a retailer winning in the marketplace without relying on the direction that this valuable process provides.

Expertise in Category Management is certainly a competitive advantage.
Some Category Management Benefits: (Source: AMR Research)

 Better In-Stock Rates: 2 - 8%
 Lower Inventory Levels: 10 - 40%
 Higher Sales: 5 - 20%
 Lower Logistics Costs: 3 - 4%

Retail Trends Driving Category Management Practice:
Category Management Considerations
 Changes in Customer Behavior
 Economic Environment
 Higher Efficiency Requirements
 Strong Competition
 Advances in Information Technology, specifically, Business Intelligence


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