What is Category Management?

A retailing process in which a full line of products (instead of the individual products or brands) in a retailer's total portfolio are clustered into product groups called "Categories" and managed as a strategic business unit. It is based on the concept that a Category Manager is better able to judge consumer buying patterns and market trends by focusing on the entire product category.

 

Each Category is run like a "mini-business", managed by both the retailer and suppliers, with its own Category turnover and/or profitability targets. The relationship between retailer and supplier moves to a more collaborative nature with greater sharing of information, heightened strategic partnership, and essentially the growing of total business.