11 May CATEGORY MANAGEMENT
In simple terms, category management is a collaborative process between manufacturers and retailers to optimise your customer’s needs and wants. The end state of the category management process is a combination of products, price, shelf presentation and promotion that will maximise profitability of the category over time.
Do you know what your key destination categories are? Are those key categories in growth or decline? To take your business forward you need to be able to answer those questions and more!
This month we are going to have a quick look at the golf ball category – as a percentage of sales your golf balls should be averaging between 12% – 16% of total sales. In terms of building a strategy with this category you need to concentrate on the following key components:
- PLACEMENT – what is the location of this category within your store layout? What sub-categories are you concentrating on (i.e. dozens, 3 ball sleeves, singles)?
- PRODUCT – what products/brands are you ranging and why? What is important to satisfy the needs and wants of your customer? How have you got those products merchandised?
- PROMOTION – what is your overall promotional strategy for the category? What sub categories/brands are you going to promote?
- PRICING – how are you pricing this category, and the products that sit within it?
HELPFUL HINT : In terms of the placement of golf balls within your store layout, if you have this category located in a high traffic flow area you are well on your way to optimising performance. Please remember that your customers would far prefer this category to be self serve and located in the body of the store, versus anywhere behind the front counter!