Planogram (POG) Merchandising

Category Management

Category management is the process of classifying and managing product categories as strategic business units, rather than simply viewing a retailer’s offering as a collection of individual products. The category management approach delivers enhanced business results by focusing on delivering consumer value. It is often a shared process between a retailer and its vendors.

To arrange products on store shelves in a manner that encourages sales. Planograms provide a schematic of a store’s shelves, fixtures, and aisles, showing in detail where each product should be placed.

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A planogram is a uniform and detailed sales layout for a store. Planograms ensure that thought and planning go into the design and implementation of merchandising plans, including shelf space allocation. A store’s visual merchandising efforts are key to attractively presenting its offerings in a way that makes customers want to buy.

Store design and visual merchandising by Sahara Marketing

Category Definition
Defining a category is the first step in a typical category management process. In this step retailer classifies the store’s products into different categories depending on the usage of the product by the consumers and its packaging. What should be the best way to define a particular category are always debatable issues amongst retailers.
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Category Role
Under this step, retailers usually determine the priority level and then assign a role for the category based on a cross category comparison considering liking and disliking of consumers, and market trends. Basically here retailers develop the base for allocating resources for the entire business.
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Category Assessment
Under category assessment step, the retailer conduct an analysis of the category’s sub categories, segments with respect to sales, turnover, profits, return on assets by reviewing consumer, market, retailer and supplier information. Category assessment requires a variety of analytical measures designed to determine the strengths, weaknesses, opportunities and threats of a particular category. It provides the retailer an opportunity to identify future prospects in the category.
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Category Performance
Measuring category performance is the fourth step in the category management process in which the retailer develops bottom-line and benchmark to measure the performance of the categories. It involves setting measurable targets in terms of sales, volume, margins, and gross margin return on investment
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Category Strategy
Under this stage of category management business process, retailers develop marketing and product supply strategies that determine the category role and performance objectives. The basic purpose behind developing strategies is the retailer’s intention to capitalize on category opportunities through creative and optimum utilization of available resources assigned to a category
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Category Tactics
Categories tactics are used to determine the optimal category assortment, pricing promotions, and shelf penetration, essential to ensure that strategies put are on right track. Category tactics determine and authenticate the specific actions that are required to implement the category strategies developed earlier
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Category Implementation
This step is used to implement the category business plan through a systematic schedule and list of responsibilities. Implementing category plan as per the objectives laid down, is the path to the success of category management.
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Category Revision
This is the final step in a typical category management business plan. Category review enables a retailer and concerned supplier to gauge the performance of a category and identify key areas of opportunity and threats to overcome by adopting alternate plans.
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Want to start a retail business? Find out if retailing is right for you, and why it doesn’t work out for so many aspiring shopkeepers. Plus, learn the basics of choosing a retail store location and writing a business plan.

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