Category Management (CM) And Its Scope In Improving The Performance Of Essay

Category Management (CM) And Its Scope In Improving The Performance Of Retail Organisations - Essay ExampleEarlier, product manufacturers have assigned the duty of change a fussy product to the product manager. However, the evolution of CM forced the organizations to create a recent post year manager. Earlier organizations give much importance to product managers whereas modern organizations give more importance to social class managers. This is because of the fact that marketing of a category of product is easier than marketing a particular product. For example, smartphones are conquering the market at present. It is easy for Samsung or Apple like smartphone manufacturers to market tablets along with smartphones since both smartphones and tablets almost belong to the same category. In hapless CM helps category manager to sets the prices of all(a) brands in the category so as to maximize total category profits (Basuroy et al., 2001, p.17). ... In short CM helps category manag er to sets the prices of all brands in the category so as to maximize total category profits (Basuroy et al., 2001, p.17). Moreover, it enhances the interactions between between retailers and wholesalers and helps them to reap more profit (Kulikova, 2012, p.67). This paper analyses how category way can improve the performances of retail organizations. Scope of category management in improving the performance of retail organisations CM starts from the definition of category and ends in the category implementation. Between these starting and end points, CM travels through other steps such as identification of category role, category assessment, category scorecard, category strategies, and category tactics. The figure given below explains various steps involved in CM. (Basuroy et al., 2001, p.17) After category implementation, organizations criticism the success and failures of CM. The category review process helps organizations to identify the strengths and weakness of existing CM and modify it to sum up the CM process in a more efficient manner. In short, CM helps organizations to polish or fine tune the existing business strategies all the time and manages the selling of a particular category of products in an efficient manner. A typical category management framework is described in the interest illustration. Category management framework (Effective day-to-day category management, 2011, p.3) From the above illustration, it is evident that market insight elements such as consumers, trends, economy, competitors and suppliers help an organization to formulate company goals related to customers, strategies, finance etc. Identification of goals helps a company to formulate strategies necessary for the promotion of a specific