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Category Management - Coggle Diagram
Category Management
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- Define role within retailer.
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- Review (leads back to step 1).
- Category Role Classification
- Destination: Main selling, high frequency.
- Routine: Everyday needs, builds retailer image.
- Seasonal: Occasional needs, differentiates retailer seasonally.
- Convenience: Enhances one-stop-shopping, margin improvement.
- Consumer-Based Category Roles
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- Opportunity for Improvement
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- Affects consumers, distributors, suppliers.
- Structured, measured activities.
- Develops category business plan.
- Categories as "mini businesses."
- Focus shift from product-centric to consumer-centric.
- Behavior changes categories.
- Focus on understanding and satisfying needs.
- Profitability (Net Profit Margin, ROI).
- GMROS: Gross Margin Return on Selling Area (GMROS = Gross Margin% x Net Sales / Selling Area).
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- Category Management Overview
- Treats categories as strategic business units.
- Aims for enhanced business results.
- Focus on delivering consumer value.
- Red Cluster: Casual wear (trendy, tier 3, low price).
- Green Cluster: Formal wear (classy, tier 3, moderate income).
- Yellow Cluster: Identify gaps, diverse assortment.
- Special gift vouchers for purchases up to Rs 30,00.
- Fashion jewelry for purchases over Rs 5,000.
- 10% off next purchase for Rs10,000 purchases.
- Product Groups/Categories is defined based on the consumer’s needs and purchasing habits.
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- Strategy in category selection.
- Planogram development based on identified clusters.