CATEGORY MANAGEMENT &

CATEGORY CAPTAINSHIP
BY:
KISHALAY KUMAR SINGH
 CATEGORY MANAGEMENT

• CATEGORY:
• IS AN ASSORTMENT OF ITEMS WHICH THE CONSUMER MAY PERCEIVE AS SUBSTITUTE
FOR EACH OTHER.

• CATEGORY MANAGEMENT:
• IS THE PROCESS BY WHICH A RETAIL BUSINESS IS MANAGED WITH THE OBJECTIVE OF
MAXIMIZING THE SALES AND PROFITS OF A CATEGORY
• IS A DISTRIBUTOR/ SUPPLIER PROCESS OF MANAGING CATEGORIES AS STRATEGIC
BUSINESS UNITS, PRODUCING ENHANCED BUSINESS RESULTS BY FOCUSING ON
DELIVERING CONSUMER VALUE.
 CONCEPT OF CATEGORY MANAGEMENT

• CATEGORIES ARE MANAGED AS STRATEGIC BUSINESS UNITS

• CATEGORIES ARE MANAGED STRATEGICALLY THROUGH CATEGORY PLANS AND
STRATEGIC ROLES
• CATEGORY MANAGERS CONTROL THEIR SHARE OF COMPANY ASSETS
• ASSET RETURNS MEASURE PERFORMANCE AND ESTABLISH PRIORITIES
• RESPONSIBILITY FOR CATEGORY PERFORMANCE/ OWNERSHIP IS CLEARLY
DEFINED AND NOT FRAGMENTED ACROSS ORGANIZATION
 SIX COMPONENTS OF CATEGORY
MANAGEMENT
• STRATEGY
• BUSINESS PROCESS
• SCORECARD
• ORGANIZATIONAL CAPABILITY
• INFORMATION TECHNOLOGY
• COLLABORATIVE RELATIONSHIPS
 1. STRATEGY

• OVERALL COMPANY STRATEGIES PROVIDE A INFRASTRUCTURE FOR CATEGORY

LEVEL STRATEGIES
• STRATEGIES MUST BE CLEARLY UNDERSTOOD THROUGHOUT THE RETAILER’S
ORGANIZATION.
 2. BUSINESS PROCESS

• A FORMAL, DISCIPLINE SET OF ACTIVITIES DESIGNED TO PRODUCE A SPECIFIED

OUTPUT.
• DEVELOPMENT AND IMPLEMENTATION OF WRITTEN CATEGORY BUSINESS PLANS
 3. SCORECARD

• A TOOL THAT DEFINES, MEASURES AND MONITORS THE PROGRESS OF CATEGORY

BUSINESS PLAN.
 4. ORGANIZATIONAL CAPABILITIES

• DEVELOPMENT OF THE ORGANIZATION’S CORE COMPETENCY

• ORGANIZATIONAL STRUCTURE
• ROLE’S/ RESPONSIBILITIES
• SKILL/ KNOWLEDGE DEVELOPMENT
• REWARD SYSTEMS
 5. INFORMATION TECHNOLOGY

• CRITICAL ELEMENTS OF THE CATEGORY BUSINESS PLANNING PROCESS

• NEED DATA- DRIVEN, FACT BASED ANALYSIS AND PERFORMANCE MEASUREMENT.
 6. COLLABORATIVE RELATIONSHIP

• RELATIONSHIPS WITH SUPPLIERS WHO ACQUIRE UNIQUE PERSPECTIVES,

RESOURCES AND SKILLS
• COMMON OBJECTIVE- DELIVERING SUPERIOR CONSUMER VALUE MORE
PROFITABILITY.
 THE CATEGORY MANAGEMENT PROCESS
• To determine the products that make up the category and its segmentation
Category definition

Category role • The purpose of the category in the retailer portfolio

Category • Analysis of the category performance

assessment

Category scorecard • Category target and objectives

Category strategies • Marketing and in-store service strategies.

Category tactics
• Determining optimal products, placement, promotions, pricing & supply tactics

Plan
implementation
• A written plan to ensure tactics achieve category role, strategies, and meet score
card.
Category review
 CATEGORY CAPTAIN

• CATEGORY CAPTAINS IS A SUPPLIER WHO FORMS AN ALLIANCE WITH THE RETAILER TO ENABLE
THE LATTER TO DEVELOP CONSUMER INSIGHT, SATISFY CONSUMERS AND IMPROVE
PERFORMANCES AND PROFIT ACROSS THE ENTIRE CATEGORY.

• CATEGORY CAPTAINS RECEIVE DOWNSTREAM DATA FOR ALL SKU’S, INCLUDING COMPETITORS
PRODUCTS, IN THE CATEGORY THEY MANAGE. THE CATEGORY CAPTAIN ADVICES THE
RETAILER ON THE BEST WAY TO PRICE, DISPLAY, AND PROMOTE ALL PRODUCTS IN A CATEGORY,
INCLUDING THOSE OF CAOMPETITORS. WHILE THIS ARRANGEMENT ENSURES RETAIL
EFFICIENCY, IT DOES RAISE CONCERNS ABOUT POSSIBLE MISUSE OF POWER BY THE CATEGORY
CAPTAIN.
THANK YOU