Also known as FMCG, or Fast Moving Consumer Goods. . CPG/FMCG goods are meats, fruits, vegetables, baked products, and dairy products. Therefore CPG Category Management is basically the skill of managing a group of these products within a retailer, in order to meet the shopper’s needs best.
The basis of category management, according to Harris models, is to: force consumer focus during retail decisions; create strategy for differentiation and competition; provide a model for collaboration; promote information sharing for the sake of better decision-making; provide strategic logic when developing tactical .
How would you apply category management principles while shopping at the supermarket?
– Better define & articulate your overall strategies. .
– Remember your Shopper. .
– Define & own your category management approach. .
– Don’t treat all your categories with equal importance. .
– Remember your Shopper (yes, again). .
– Be consistent in your category analysis & approach.
What is Category Management in CPG?
Category Management is the primary platform from which CPG (Consumer Packaged Goods) brand owners interact with retailers. Category Management provides the language, process framework, and metrics for communicating all strategic and tactical recommendations to the retailer.
How do you manage product categories?
– Add a Name.
– Add a Slug (optional); this is the URL-friendly version of the name.
– Choose a Parent if this is a subcategory.
– Enter a Description (optional); some themes display this.
– Choose the Display type.
What does category management mean?
Category management is the process of bundling like products into a singular category, or business unit, and then addressing procurement, merchandising, sales, and other retail efforts on the category as a whole.
What are the 4 P’s of category management?
The video below highlights the 4 P’s of Category Management: Product, Placement, Price & Promo.
How do you implement category management?
– Initiation phase.
– Analysis phase.
– Category strategy creation.
– Category strategy implementation.
– Continuous improvement.
How many steps are there in category management process?
eight steps
How do I become a good category manager?
A category manager needs a broad range of skills to be successful: Hard analytical skills, such as the ability to analyze large swaths of data to identify trends and gaps in the market, the ability to implement a strategic plan aligned with the goals of the business, as well as soft skills to communicate and negotiate .
How does category management help retailers?
Category management can help retailers identify key value categories, increase category sales volume, and reduce organizational spend. . It focuses on distinct areas of expenditure and gives key insights to companies to readjust their procurement model as well as select right suppliers for their organization.
What is the average salary for a category manager?
$63,786
What policy establishes category management as a practice across the government?
Category management, implemented widely by the General Services Administration during the Obama administration, sets best in class contracts and other procurement practices designed to leverage the federal government’s massive purchasing power.
What is category management strategy?
What is Category Management? Category Management is a strategic approach to procurement where organisations segment their spend into areas which contain similar or related products enabling focus opportunities for consolidation and efficiency.
Why is category management important in procurement?
Category Management helps to organise the procurement team resources and contributes towards economies of scale and enhanced supplier relationships whilst gaining an in depth understanding of how each category contributes to risk management.
How does category management add value?
Benefits of Category Management The benefits of implementing a category management program include better outcomes, improved quality, greater savings, efficient use of resources, a better understanding of the market and an increased focus on collaboration and innovation.
What are the two components in category management?
The two core components are strategy and business processes. The enabling factors are performance measurement, information technology, organizational capabilities and co-operative trading partner.
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