To be successful in category management nowadays, requires a broad set of capabilities as compared to the yester years. Some of these capabilities include macro space allocation, price optimization, financial budgeting, private brand development, assortment planning, and combined business planning with vendors.
The responsibility of category management now spans the early development of the category policy and role, to the reorganizing of product portfolio offered by corporations to their customers. Industries are now planning to amalgamate these capabilities with the traditional functions of category management to strengthen their value chain and increase their sales.
Although positive effects of modern category management are witnessed by many, most retailers still continue to be trapped in the past. Here in this blog we have identified three key aspects to adopt in order to transition towards modern category management.
Synchronization of all the Departments
Most of the organizations are inept in their processes and design to provide timely feedback to other departments. All the departments and the customers suffer because of this incompetency. But the department of category management suffers the most, mainly because category management requires all the departments of the organization to be synchronized and integrated. Software programs such as CRM and CPQ have proved to be useful in syncing the data thereby enhancing the performance of category management function.
Creation of Category Management Strategy
Building compelling products and increasing the customer satisfaction must be the common thread connecting all departments of any corporation. For the creation of such products, consumer insights must be linked to the category management process. Successfully drafting category management strategies begins by defining each category’s function within the product portfolio. Coordination of tactics and strategies related to the marketing mix (Product, Price, Place and Promotion) is also imperative for the category management process.
Increased Customer Centricity
One of the most important aspects of modern category management is to build a long lasting relationship with customers across various channels, whether the customer is an individual or a corporation. This establishment of long lasting relationships requires the company to move away from ‘one-size-fits-all’ manufacturing strategy to a more customized manufacturing strategy.
It is not pragmatic to move from your current category management strategy to the modern category management, but this should be kept in mind that the sooner you move to modern category management, the better you would be able to serve your customers and make them loyal to your company.