Exhibit 33.4 Category manager’s role encompasses marketing and
merchandising in addition to purchasing.
Structure follows strategy. As the practise
of category management permeated retail organizations, “buyers” transformed
into “category managers”. Their roles, Exhibit 33.4, expanded to encompass operational and
financial accountability for their categories. Besides purchasing, their
responsibilities now encompass merchandising (assortment, and space allocation)
and marketing (pricing, promotions, in-store marketing). This provides for a better
co-ordinated approach to category management with category responsibility and
authority placed under one team.
Meanwhile suppliers embraced the practice of trade
marketing, a form of business-to-business marketing intended to strengthen trade
relationships and improve business performance.
One of the outcomes of this transformation, though
limited to more progressive retailers, was change in purchasing orientation
or the philosophy that guides purchasing-related decisions. Whereas
traditionally buyers focussed on obtaining the lowest prices and maximizing
power over manufacturers, progressive category managers now seek growth in
sales and profitability through a more collaborative approach.
