Benefits of Category Management

From a manufacturer’s perspective, category management stimulates the growth of their categories and their brands. The process allows them to collaborate with retailers to strongly influence consumers at the store. Moreover, as category captain or category advisors, participating manufacturers benefit from value added relationship with retailers.

Customers benefit from the improved shopping experience. They find the right mix of products, merchandised in a logical and attractive manner.

Category management helps retailers cope with the complexity of their operations and maximise their return on inventory investment. Improvements in product range and merchandising enhance shopper satisfaction and store loyalty and reduce stockouts. These factors help to lift sales.

In addition, retailers benefit from cost saving ensuing from the culling of poor performing items, optimization of inventory, and reduction of costs associated with inventory holding and working capital. These reductions in costs and the improvements in sales, combine to substantially improve profits for retailers.

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