TM360 Academy

Workshop 1: Category management and product

Selection at the point of sale - 2 days

Retail Strategy Architect
Category Management
Expert Pricing & Merchandising

Module 1: category management process in marketing

  • The place of category management in retail marketing – pro-consumer perspective.
  • Comprehensive approach to category management - definition, structure, scope.
  • Common area in category management - manufacturer, chain, customer.
  • Elements and process of category management regarding stages of making management decisions - strategy, analyses, instruments, implementation, audit, evaluation.
  • Marketing instruments used in category management - product selection, price management, merchandising, product distinguishment strategies – taking the customer's perspective.
  • A look at the category management process from the perspective of the market and manufacturer's goals.

Module 2: company strategy for a selected product category

  • Analyses and assessments of currently employed solutions in selected categories and competitors’ solutions in order to pinpoint an advantage on the market based on a pre-audit conducted prior to the training.
  • Preparing a SWOT analysis for “6P” for a selected category from the perspective of the company, competitors, leading manufacturers.
  • Category structure – goals and principles of building a merchandise tree and the place of a product in the category manager’s decisions.
  • Determination, within a category, of: merchandise breadth and depth as well as key merchandise/segments expanding categories.
  • The importance of customer purchasing motives in the category manager’s product decisions.

Module 3: category structure building

  • Classes: building the structure of a merchandise tree for a selection of categories.
  • Presenting possible goals to be set within a category: sales, margin, share, turnover, cross-selling, marketing goals, etc.
  • Determining KPI to measure the accomplishment of objectives in category management.
  • Exercise: determine KPI for a given category based on prepared analyses.

Module 4: analyses and assessment of category effectiveness

  • Available analyses obtained from professional research companies. Qualitative research – customer journey, customer segmentation, brand and product perception, and more. Quantitative research – share in a category, division of brands, category structure, average price, co-occurrence within a category.
  • Chain’s own analyzes in a category – category share matrix, manufacturer matrix, manufacturer share, manufacturer margin mass, margin (percentage, value, mass) in a category, sales in a category, margin vs. sales, category mapping (sales, margin, turnover), ABC analysis, sales per square meter, sales trend analysis in a category, analysis of complementarity within a category, analysis of an alternative state, and more.

Module 5: roles and strategies within a category

  • Types of roles in a category, introduction and designation of categories in roles - traffic building, standard, margin role.
  • The relevance of category strategies, introduction and designation of categories in strategies – attracting customers to the store, building the value of the shopping cart, surprising customers, boosting profitability.
  • Category roles and strategies vs. multi-channel sales.
  • Exercise: determining roles and strategies of given categories in the tree.
Roman Szymczak
my publications

Module 6: presentation of solutions employed for a given category

  • Discussing the prepared structure of product category including SKU.
  • Determining major threats present at the stage of implementing category management concepts.
  • The use of marketing instruments and further decisions developing the product category.
  • Building argumentation for individuals in charge of making decisions in category management.

Meta-exercise

Category analysis made from the perspective of merchandise and prices in order to maximize the margin and presenting the achieved results on the basis of a client’s case study.

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Roman Szymczak - TM360 Ltd

Aleja Jana Pawła II 27
00-867 Warsaw, Poland

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